iHeartMedia Shares Slide 16.5% After BofA Downgrades Stock to Underperform

what happened

Shares of media company iHeartMedia dropped 16.5% in the afternoon session after BofA lowered its rating from Neutral to Underperform and cut its price target from $5 to $1. According to Tipranks, the bank pointed to heavy debt leverage, structural pressure on terrestrial radio and a sizable reduction in its 2026 calendar-year guidance, as reported by stockstory.org.

Two days earlier the stock had already plunged 62.3% after third-quarter results: revenue reached $1.03 billion, up 3.3% year on year, while adjusted EBITDA fell to $170.5 million from $205 million a year earlier. The full-year EBITDA midpoint of $575 million also came in well below analyst forecasts of $776.8 million. CEO Bob Pittman blamed weaker radio sales on television broadcasters expanding inventory and absorbing political ad spending, along with big brands delaying campaigns until after the election.

Stockstory.org also notes the shares are down 86.3% year to date, trading at $0.57, or 91% below their 52-week high of $6.33.

why it matters

For the market, this signals that the company's problems are not a one-off: heavy debt and a shrinking radio ad base are weighing on financial stability at the same time. Moves of this size are rare even for iHeartMedia, suggesting investors are significantly revising their view of the business.

market impact

iHeartMedia: the downgrade and weak guidance are pressuring the stock

• ▼iHeartMedia shares pressure down — the BofA downgrade and lower EBITDA guidance weigh on the stock's valuation

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