Paramount continues to be America’s weakest media company – 24/7 Wall St.

Paramount Global’s (NASDAQ: PARA) revenue was flat last quarter. Its stock is trading near its 52-week low and its streaming subscriber base is among the lowest in the industry. The company barely continues to be in the forefront of America’s media elite.

In the most recently reported quarter, Paramount posted revenue of $7.3 billion, down 1%. Earnings fell 59% to $0.58 per share. Its stock is trading at just over $25, dangerously close to its 52-week low, and down from a 52-week high of $44.23.

One of the reasons Paramount has such problems is because its streaming business is too small. Streaming subscribers numbered 62 million at the end of last quarter, up 10%. This puts it behind Netflix, Amazon Prime, Disney+ and HBO Max. That’s less than half the size of the top three companies on this list. It must also compete with Apple TV+. Of all the streaming services, it has the biggest potential budget for growth due to Apple’s track record, installed base of hardware products, and brand.

Paramount has a problem looming in its future. Advertising revenue is usually affected by a recession, and one has started or will soon be. The company’s CBS revenues are particularly at risk.

Finally, Paramount’s film studio business is only modest in size and will struggle in the long term to keep pace with its peers.

For each of these reasons, Paramount’s stock will continue in the wrong direction.

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Cathy W. Howerton