Last Updated: 15 Sep 2024
Executive Summary
Paramount Global Class B (PARA) is a global media and entertainment company with a market capitalization of $75.1 billion. The company has been facing headwinds in recent quarters due to cord-cutting and competition from streaming services. However, the company's recent quarterly results showed signs of improvement, with revenue and earnings growth. The stock is currently trading at $10.57, below its 52-week high of $17.28. Analysts are mixed on the stock, with a majority rating it as a Hold.
Company Overview
Paramount Global is a global media and entertainment company. The company's operations are divided into three segments: Media Networks, Filmed Entertainment, and Direct-to-Consumer. The Media Networks segment includes the company's television networks, such as CBS, Showtime, and Nickelodeon. The Filmed Entertainment segment includes the company's film studio, Paramount Pictures. The Direct-to-Consumer segment includes the company's streaming services, such as Paramount+ and Pluto TV.
Fundamental Analysis
Paramount Global's financial performance has been mixed in recent quarters. The company's revenue has been declining due to cord-cutting and competition from streaming services. However, the company's earnings have been improving due to cost-cutting measures. In the most recent quarter, the company reported revenue of $29.3 billion, down 1% year-over-year. The company's earnings per share were -$0.87, compared to -$1.52 in the same quarter last year.
Paramount Global's balance sheet is strong. The company has $10.3 billion in cash and equivalents and $17.2 billion in debt. The company's debt-to-equity ratio is 0.6, which is below the industry average.
Technical Analysis
The technical analysis of Paramount Global's stock shows that the stock is in a downtrend. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 35, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Paramount Global's stock is mixed. The stock is currently trading in a downtrend, but the stock's RSI is oversold. This indicates that the stock could be due for a bounce. However, the stock's fundamentals are weak, and the company is facing headwinds from cord-cutting and competition from streaming services.
Long Term Outlook
The long-term outlook for Paramount Global's stock is uncertain. The company is facing headwinds from cord-cutting and competition from streaming services. However, the company is taking steps to address these challenges, such as investing in streaming services and developing new content. If the company is successful in these efforts, the stock could rebound in the long term.
Analyst Recommendations
Analysts are mixed on Paramount Global's stock. A majority of analysts rate the stock as a Hold. The average analyst target price is $12.18, which is 15% above the current price.
