What Happened?
A number of stocks fell in the afternoon session after the war with Iran pushed oil prices back to US$100 per barrel, fueling fears of a prolonged conflict and its impact on global inflation.
The price of Brent crude, the international oil benchmark, jumped 8.2% to $99.46 a barrel after briefly crossing the $100 threshold. The escalating conflict worsened worries about a potential blockade of oil production in the Persian Gulf, which could have long-term consequences for the world economy. In response to the geopolitical uncertainty, major stock indices fell, with the S&P 500 and the Nasdaq Composite each dropping over 1%, while the Dow Jones Industrial Average was down more than 500 points. The market volatility signaled investor concern over the potential for a debilitating period of inflation.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Consumer Discretionary - Toys and Electronics company Funko (NASDAQ: FNKO) fell 3%. Is now the time to buy Funko? Access our full analysis report here, it’s free.
- Consumer Discretionary - Specialized Consumer Services company Matthews (NASDAQ: MATW) fell 3.9%. Is now the time to buy Matthews? Access our full analysis report here, it’s free.
- Consumer Discretionary - Home Furnishings company Lovesac (NASDAQ: LOVE) fell 4.7%. Is now the time to buy Lovesac? Access our full analysis report here, it’s free.
- Consumer Discretionary - Broadcasting company iHeartMedia (NASDAQ: IHRT) fell 6.8%. Is now the time to buy iHeartMedia? Access our full analysis report here, it’s free.
- Consumer Discretionary - Footwear company Caleres (NYSE: CAL) fell 3.6%. Is now the time to buy Caleres? Access our full analysis report here, it’s free.
Zooming In On iHeartMedia (IHRT)
iHeartMedia’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 9 days ago when the stock dropped 6.4% on the news that the company reported fourth-quarter financial results that missed profit expectations and provided weak guidance for the upcoming year. While iHeartMedia's quarterly revenue of $1.13 billion was flat year over year, it did beat analyst forecasts. However, the company's profitability was a major concern for investors. Its GAAP loss per share of $0.27 was significantly below analysts' consensus estimates for a $0.13 profit. Furthermore, its operating margin fell to 7.6% from 9.3% in the same quarter last year, and its Adjusted EBITDA also missed expectations. Adding to the negative sentiment, iHeartMedia's EBITDA guidance for the 2026 financial year was approximately $800 million at the midpoint, falling short of the $861.7 million that analysts were anticipating.
iHeartMedia is down 32.4% since the beginning of the year, and at $2.81 per share, it is trading 45% below its 52-week high of $5.10 from December 2025. Investors who bought $1,000 worth of iHeartMedia’s shares 5 years ago would now be looking at an investment worth $169.59.
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