Blockbuster Stock on Downward Spiral

(Blockbuster article updated from Thursday)

DALLAS (TheStreet) -- Blockbuster(BBI) is continuing on its tumultuous decline, after it reported on Thursday that fourth-quarter earnings came in significantly lower than expected due to weak holiday sales.

The company now expects a fourth-quarter loss between $183 million and $193 million.

CEO Jim Keyes said the company beefed up inventory and advertising during the quarter, but to no avail.

"In spite of these efforts, our performance during the holidays was well below expectations and anticipated adjusted EBITDA was affected, specifically in the month of December where as much as 30% of our full-year EBITDA has historically been generated," Keyes said in a statement.

Standard & Poors lowered its rating of Blockbuster on the news, moving the company to negative from stable.

Moody's Investor Services said on Friday that Blockbuster has enough liquidity to get them through the remainder of the year. But like S&P, Moody's does have concern over the company's long-term credit.

Shares of Blockbuster are tanking 7.2% to 45 cents in Friday trading. On Thursday the stock closed down 33% to 49 cents.