Getty Images plunges after weak Q2, JP Morgan cites Hollywood strike impact
MoMorad
Getty Images (NYSE:GETY) shares plunged nearly 14% in pre-market trading after the media company reported weaker-than-expected results, with J.P. Morgan noting the impact of the Hollywood writer and actor strikes. 
"The Hollywood strikes are impacting GETYâs entertainment business and media/production customers," analyst Cory Carpenter wrote in an investor note. "The headwinds are concentrated within Editorial, with events such as the Emmyâs being pushed back, but also flows through to Creative where evening talk shows (for example) are not currently consuming content."
Carpenter added that the company's lowered revenue and adjusted EBITDA outlook factors in that the strikes will continue through the end of the year. 
Getty (GETY) now expects sales to be between $920M and $935M and adjusted EBITDA to be between $292M and $303M.
During the second-quarter, the company lost 1 cent per share as revenue declined 3.3% year-over-year to $225.7M. Analysts were expecting a net gain of 4 cents per share on $236.26M in revenue. 
In addition to the strikes, Carpenter also noted that Getty (GETY) is getting ready to launch its generative AI product with Nvidia (NVDA) later this quarter, but it is not likely to "significantly contribute" in the second-half of this year. 
"GETY did not call-out [generative AI] as having any impact on near-term performance, but this remains a key investor focus and these results are certainly not going to alleviate this overhang," Carpenter added. 

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