What Paramount’s Earnings Report Could Tell Us About the State of Streaming
Feb 25, 2024
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This podcast discusses Paramount Global's earnings report, potential acquisitions, and impact on streaming. Market analysts share insights on investor expectations and market reactions to inflation data. Additionally, CFOs from major companies prepare for leap day, highlighting disparities in treatment of salaried and hourly workers.
Paramount's stock decline signals potential acquisition interest, emphasizing challenges in the streaming landscape.
Investors watch for Paramount's earnings report to gauge performance in streaming services and potential market impacts.
Deep dives
Paramount Global's Stock Expectations
Looking ahead to Paramount Global's earnings report, investors are eyeing the company's performance as its stock has notably declined by over 50% in the past year. Despite this, an analyst remains optimistic, with a price target 60% higher than the current trading value. Paramount, known for its extensive media properties, including film studios and streaming services, is potentially viewed as an acquisition target.
Challenges and Opportunities for Paramount
Paramount's stock struggles are attributed to shifts in the media landscape due to rising digital platforms like Netflix and YouTube. The analyst suggests that Paramount could overcome its challenges through a potential acquisition, aiming to enhance scale and competitiveness, especially in the streaming space. Paramount's possession of NFL offerings is highlighted as a key asset, crucial for domestic market strength and differentiation among major players.
Anticipation for Paramount's Earnings Report and Focus Areas
Ahead of Paramount's earnings report, attention is drawn to key performance indicators such as mitigating losses in their direct-to-consumer business, addressing challenges in linear programming, and showcasing a robust content pipeline. The importance of reducing losses and demonstrating growth in streaming services is paramount to investor confidence, while any unexpected declines in subscription services may impact stock performance negatively.
This week, we’re looking ahead to Paramount Global’s earnings report. The company that includes TV, movies, and streaming, has been taking it on the chin from investors. Its stock has lost more than 50% of its value in the past year, so Wednesday’s report could be pivotal. Recently much of the talk about Paramount has been as an acquisition target — for media executive Byron Allen to Skydance Media CEO David Ellison. Michael Morris, senior managing director at Guggenheim Securities, joins us to share what this week’s earnings report from Paramount could tell us about what’s coming next — for streaming, for entertainment and for media conglomerates on Wall Street. Then, we turn our attention to the upcoming personal consumption expenditures report, or PCE. The report is slated to be released on Thursday and with stocks looking priced for perfection these days, we’ll unpack what investors need to know to be ready. WSJ market reporters Gunjan Banerji and Sam Goldfarb join for a roundtable discussion on what the report means for the markets. Lastly, we’re celebrating the extra day this month with Mark Maurer, reporter for WSJ’s CFO Journal publication. Mark shares how chief financial officers at some of the largest companies, like Chipotle, Walmart, and Delta Airlines, are getting investors ready for leap day.