Categories: OLD Media Moves

Kantrow disses CJR for dissing

Yvette Kantrow, the executive editor of TheDeal.com and one of the sharpest analyzers of business media coverage, took Columbia Journalism Review to task in her weekly column. Seems the self-appointed media watchdog was too critical of Barron’s recent critical piece on Google for Kantrow’s taste.

Kantrow writes: “If stories about the market, or a particular stock, must be “ironclad” and “unambiguous,” as CJR deems they must, any journalist now writing about stocks (or bonds or soybean futures or anything else bought and sold on an open exchange) should just unplug their computers, throw away their Rolodexes and retreat to that cute little bookstore in Vermont right now.

“For nothing about a market is certain; just because a stock trades at one price today doesn’t mean it will trade at that price a year from now, a month from now, even a day from now. There is no such thing as an ‘ironclad’ story when writing about the market, unless of course, you’re simply reporting what’s already happened. Once you get into predicting how a stock (or a company, for that matter) will perform tomorrow, or the next day, or the day after that, uncertainty is inescapable.

“That’s not to say, of course, that financial reporters should feel free to carelessly produce uninformed stories fueled by reckless speculation. But that’s hardly what [Barron’s writer Jacqueline] Doherty did. Right off the bat — the second paragraph, to be exact — she acknowledges that ‘there are those who disagree’ with her bearish thesis and expect Google to go as high as $2,000 a share. She then engages in what she admits is a ‘less than scientific’ exercise in which she shaves 20% off of an ‘uber-bull’s’ 2006 revenue estimates for Google; trims his projected expenses; makes a few other assumptions about compensation and cash and concludes that Google would be worth $188 a share, not its recent $360.”

Later, Kantrow added, “Does CJR really want financial reporting that does nothing but repeat or reinforce the conventional wisdom? Barron’s, interestingly enough, caught similar flak in March 2000 when it ran its infamous — or should we upgrade it to famous? — burn-rate story that claimed that scores of new-economy darlings were quickly heading for bankruptcy. Other journalists, Web companies and investors severely chastised the magazine for causing Internet stocks to fall with an analysis they viewed as deeply flawed. But when the tech-heavy Nasdaq crashed one month later, the piece was hailed as visionary for being one of the first to take sky-high Internet valuations to task.”

Read Kantrow’s entire column on the issue here.

Recent Posts

Dynamo hires former Business Insider executive editor Harrington

Former Business Insider executive editor Rebecca Harrington has been hired by Dynamo to be its…

2 days ago

Bloomberg TV hires Kerubo as desk producer

Bloomberg Television has hired Brenda Kerubo as a desk producer in London. She will be covering Europe's…

2 days ago

Jittery CNBC staff reassured by new boss

In a meeting at CNBC headquarters Thursday afternoon, incoming boss Mark Lazarus presented a bullish…

2 days ago

Making business news accessible to a wider audience

Ritika Gupta, the BBC's North American business correspondent, was interviewed by Global Woman magazine about…

2 days ago

Rest of World hires Lo as China reporter

Rest of World has hired Kinling Lo as a China reporter. Lo was previously a…

2 days ago

Bloomberg rises to No. 7 biz news website

Bloomberg News saw strong unique visitor growth to its website in October, passing Fox Business…

2 days ago