Since DirecTV dropped Newsmax on Jan. 24, AT&T’s stock has fallen by almost 7%, wiping nearly $10 billion from its market value.
AT&T, the 70% owner of DirecTV, has come under fierce criticism after deplatforming Newsmax from its satellite TV systems — the second conservative channel it has removed in the past year, with OAN going last April.
Days after the Newsmax drop, former President Donald Trump called on Americans to cancel not only DirecTV but all AT&T services, including cellular and wireless services.
“I think it’s deplorable,” Trump said of the cancellation. “Newsmax did well in the ratings, so they actually took something off that was actually doing well in the ratings, as opposed to other shows that don’t.”
Since the removal of Newsmax, AT&T stock appears to be significantly underperforming the market while major stock indices have held steady during the past 12 trading days.
The S&P 500 actually rose 0.37% between Jan. 25 and Feb. 10, while the Dow Jones Industrial Average declined just 1.84% between those dates.
Newsmax has been alerting its supporters about AT&T’s decision through its network, the fourth highest-rated cable news channel, reaching 25 million Americans, according to Nielsen.
Newsmax also reaches more than 40 million Americans through significant online platforms, apps, its social media network, as well as radio and print outlets.
The reaction against AT&T and DirecTV for the deplatforming has been swift and serious.