Why Paramount Global Stock Was Down This Week
Week to date, shares of Paramount Global (NASDAQ: PARA) (NASDAQ: PARA.A) were down 6.8% as of Friday afternoon, according to data provided by S&P Global Market Intelligence. The stock dropped following management's warning that advertising revenue was coming in below third-quarter numbers.
Paramount grew advertising revenue by 1% in the third quarter on a constant-currency basis. Management expected advertising in the fourth quarter to be in line with the third quarter, but ad spending still appears to be slowing as the economy weakens.
Remember that it's normal for the advertising business to experience a decline during times like these. Ad spending will recover again when the economy is more stable. In the meantime, this cyclical swing is a once-in-a-decade buying opportunity for investors that have a longer time horizon than market traders.
Source Fool.com
