Posts Tagged ‘NASDAQ’

Carbonite Pays a Price for Dropping Limbaugh

Wednesday, March 7th, 2012

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The Daily Caller is reporting that Carbonite has taken a significant stock price hit since CEO David Friend came out on Saturday to dump advertising on Rush Limbaugh’s show.  Call it bad luck, or call it “El Rushbo’s Revenge,” but whatever you call it, it’s a well-deserved smack-down for cowardice by a sponsor.  Of course, as it has turned out, Sandra Fluke is a hardcore leftist activist, and more and more, this is looking like a plot into which Limbaugh stepped, perhaps as the unintended target.

From the Daily Caller article:

However, it hasn’t done much to contribute to his company’s stock price. Since the market opened on Monday through its close today, Carbonite stock (NASDAQ:CARB) has plummeted nearly 12 percent, outpacing the drop of the NASDAQ index in that same time period by nine-and-a-half points. It was also one of the biggest decliners on the NASDAQ on Tuesday.

Some will consider this justice, but frankly, I think it should serve as a lesson.  Even publicly traded companies ought to be careful about dumping ads from the most popular talk-show in the land, and certainly not in the angry tone that David Friend used in his statement Saturday.  I think that the fact that he did so while acknowledging that Limbaugh had already apologized probably explains it.  Nobody likes to see that sort of ridiculous, overbearing reaction. It gives the impression of putting on a show.

 

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