But investors' response to last week's Fed move gave an interesting insight into the psychology that can drive media stocks.

They should be mindful, too, that economic hopes and fears do not fully explain the recent behavior of media stocks.

Short sellers, by this theory, helped drive media stocks to abnormally low levels in December.

That contrasts, he said, with "the news events around the conference," like the recent declines in media stocks.

It climbed as high as $36 dollars in the last year, but then fell sharply, along with many other media stocks.

The competition was fierce: All media stocks have been hammered recently.

Several analysts said yesterday that investors might be switching into what they viewed as cheaper media stocks.

They also want the new media stock as a currency to buy companies outside the core telephone business.

Many other media stocks, including those of newspaper companies, have followed a similar trajectory.

"We don't want to see them buying media stocks or expensive foreign operators."