Why Paramount Tumbled 7% on Tuesday
Shares of entertainment name Paramount Global (NASDAQ: PARA) ended Tuesday's session down 7% after its CEO cautioned shareholders the current quarter's bottom line wouldn't be as strong as initially expected.
It's a bit of a contradiction.
Speaking at an industry conference hosted by UBS, Paramount CEO Bob Bakish suggested on Tuesday that his company's flagship streaming service, Paramount+, saw record-breaking subscriber growth as well as revenue in the month of November. However, during the very same presentation, Bakish conceded the weakening advertising market was likely to hurt the media company's overall fourth-quarter results. Although he didn't offer specifics, Bakish did comment: "We do now see the fourth quarter coming in a bit below the third quarter" -- a third quarter that already fell short of earnings and revenue estimates thanks to a 5% year-over-year revenue slide for its advertising/pay-TV business.
Source Fool.com
