Sharp Selloff for Level 3 Shares

Shares of Level 3 (LVLT) plunged nearly 40 percent on concerns about the impact of the  slowing economy on the company's business. The company's third-quarter earnings were largely in line with expectations, but Level 3 reported a lengthening sales cycle across several of its businesses, and said that its content markets group “has experienced a decrease in sales to certain media and entertainment companies who may be dependent on external financing sources.” The content markets group includes Level 3's content distribution network (CDN) business.

Shares of Level 3, which have been battered in recent weeks, lost 49 cents to close at just 75 cents, a decline of 39.4 percent on the session. Rob Powell at Telecom Ramblings has more on the Level 3's earnings, while Eric Savitz at Barron's updates the trading action.