Paramount Global

Paramount had a disappointing set of results in the last quarter as it failed to meet the revenue expectations as well as earnings expectations of Wall Street. The company maintained its strength in TV, expanded in cinema, and benefitted from the worldwide surge in streaming during the third quarter. Nevertheless, given that the current environment and economic situation are challenging, its business was adversely affected by macroeconomic headwinds. Among major updates, Walmart chose Paramount+ when looking to add a streaming service to its Walmart+ package. Walmart+ subscribers can also choose to subscribe to a Paramount+ essential streaming service at no additional cost. During the quarter, they teamed up with strong partners to launch new streaming services in foreign areas. In collaboration with Sky Italia, they commemorated the Paramount+ debut in Italy. They also launched Paramount+ in Germany, Austria, and Switzerland with Sky Deutschland. To sum up, Paramount will continue to show the long-term value of its extensive multi-platform business by providing its customers with outstanding experiences. We give the company an ‘Underperform’ rating with a revised target price.