Art Market Monitor

Global Coverage ~ Unique Analysis

  • Contact Us
  • Podcast
  • Newsletter
  • Fantasy Collecting Game
  • AMMpro

Coming Up with Reasons to Stay in Sotheby's Stock

May 16, 2011 by Marion Maneker

The Wall Street Journal’s John Jannarone is looking for reasons not to abandon Sotheby’s stock after a run to near record highs:

some investors have worried that the art market has lost the momentum needed to keep impressive profit growth at Sotheby’s on course.

Before writing Sotheby’s off, investors should remember that quarterly results may belie a perfectly healthy art market. After all, the key to Sotheby’s earnings is total auction revenue, which had previously been boosted by ultraexpensive works such as those by Pablo Picasso and Alberto Giacometti. The absence of such blockbusters helps explain softer sales in recent weeks. […]

One other worry: Even if the art boom continues, Sotheby’s will lose out to Christie’s if the latter sacrifices margins for market share. But while Christie’s is closely held, it ultimately needs to consider profit and would suffer by consistently undercutting its longtime rival on commissions.

Fine art is a volatile business, and big swings in Sotheby’s stock are likely to happen again. But without a stronger sign the art market has cracked, it is probably early to walk out of the Sotheby’s show.

It Is Too Soon to Walk Out on Sotheby’s Stock (Wall Street Journal)

More from Art Market Monitor

  • What Happens to Sotheby’s After the Activists Get What They Want?What Happens to Sotheby’s After the Activists Get What They Want?
  • McClymont Wins Praise for ‘Unusual Clarity’ in Sotheby’s PresentationMcClymont Wins Praise for ‘Unusual Clarity’ in Sotheby’s Presentation
  • Meyer Touts NeubergerMeyer Touts Neuberger
  • Sotheby’s Digital Strategy and the Stock’s CorrectionSotheby’s Digital Strategy and the Stock’s Correction
  • Sotheby’s Announces $12m Picasso to Lead Joan Oestreich Kend CollectionSotheby’s Announces $12m Picasso to Lead Joan Oestreich Kend Collection
  • Notes on Sotheby's Conference CallNotes on Sotheby's Conference Call
  • Print
  • Tweet

Filed Under: General Tagged With: Sotheby's

Advertise on Art Market Monitor with Nectar Ads

Top Posts

  • Sotheby's Announces $150m+ Modigliani
  • What's Going On In the Condo Market?
  • Robert Frank Is Worried About the Art Market
  • Christie's Has Agnes Martin, Ellsworth Kelly from Brad Grey Estate
  • Art Cologne Sales Report
  • David Norman Talks Picasso with the FT
  • Login
  • Christie's $30m Rothko from 1954 for May
  • Scholars Get Ready for Modigliani-mania at the Tate
  • Artcurial Has Lejard Collection of Légers & More


  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • Art Loans
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
Advertise on Art Market Monitor