Getty Images
Credit: iStock Photo
Stock image platform Getty Images' shares fell nearly 8 per cent on Tuesday as a forecast cut due to the actor and writer strikes in Hollywood spooked investors.
Getty, which competes with Reuters News and Associated Press to provide photos and videos for editorial use, now expects the strikes and macroeconomic pressures to bring full-year revenue down by $22 million to about $927.5 million.
Two analysts cut their price targets on the stock saying overall visibility on Getty's shares remains pressured as the Hollywood strikes are expected to persist through the rest of the year.
If the strike goes all the way to the end of the year the company is conservatively assuming that it will impact not just the entertainment piece of the business, but also its media clients, Getty CFO Jennifer Leyden said on a post-earnings call on Monday.
Writers went on strike May 2 over an impasse on compensation, minimum staffing in writers' rooms, residual payments and other issues. They were joined on the picket lines on July 16 by members of the Screen Actors Guild, effectively halting much of film and television production.