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What: Shares of Warner Music Group
So what: Warner Music's first-quarter loss widened as sales dropped 14% to $789 million, versus the average analyst estimate of $798 million. The music industry continues to struggle mightily in the face of withering compact disc demand, with today's quarterly loss marking the eighth straight for Warner Music.
Now what: I'd continue to leave Warner Music alone. Even the company's digital sales, its lone bright spot over the past few years, showed clear signs of slowing down. Unfortunately for Warner Music, along with other recording companies like Vivendi's Universal Music Group and Sony's Sony Music Entertainment, it looks like the transition from CDs to digital music will remain a bumpy one for quite some time.
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