Paramount DTC EBITDA TTM losses were ~$1.6 billion in Q2 FY22, with total company TTM EBITDA falling to ~$3.5 billion - down nearly 40% versus Q1 FY21. This may be the right decision by management (they've shown some fairly impressive results in DTC on both paid and ad-supported / FAST), but this chart shows the cost of trying to compete in global DTC. Said differently, falling behind and playing catch-up can be costly (another good example is Walmart, where they've taken on P&L pressure for the better part of the past decade to try and win in U.S. e-commerce).

It will be interesting to see how the next few years unfold in the media industry...
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Luka 🦉's avatar
$105.2m follower assets
Paramount 💸 $0.24/share (in line)
Thank you, $PARA, for a generous dividend.
I am not a subscriber of Paramount+, but I subscribed to their dividend 😂
Yield 3.92%
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Erick Mokaya's avatar
$103.9m follower assets
Visa. Microsoft and Alphabet Reporting Today AMC
Saw Top Gun: Maverick yesterday, what a fantastic movie! Surpassed $900M at the global box office, nice win for $PARA
Just a reminder, Warren Buffett's $BRK.B has a position since Q1 2022, might be worth a look.
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Spot the next stock to buy with one click!
Looking for an undervalued stock? Use our valuation screener to spot outliers with low PE ratios. Current depressed stocks include $EBAY $NRG $PARA $NUE $MRNA $PHM $F and $DHI.

NRG Energy $NRG is a clear outlier, trading at a PE ratio of 2.2x and a market cap to revenue ratio of 0.3x.

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$NUE and other commodities-linked stocks are stocks to be wary of when buying them on cheap valuation. Usually commodities players are at their peak when they're at their cheapest.
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Box Office Update: Top Gun Brings in $156M
Over the weekend, Top Gun: Maverick broke the Memorial Day box office record, raking in $156M. It’s a career best for Tom Cruise, who had never had a film open to over $100M.

The original Top Gun movie was released way back in 1986 and became the year’s top-grossing film and catapulted Tom Cruise to megastardom.

Want to invest in Top Gun: Maverick's potential ongoing success?

Paramount $PARA might be a way to play it. Paramount is the distributer of the movie.

What's probably more notable is that Warren Buffett’s Berkshire Hathaway revealed a new stake in Paramount Global on May 17th.

Berkshire bought 68.9 million shares of Paramount to build a stake worth $2.6 billion as of the end of March, making Paramount Berkshire’s 18th largest holding at the end of the first quarter.

Paramount rebranded from ViacomCBS in February in a move to emphasize its flagship Paramount+ streaming service. While Paramount missed earnings expectations in its latest quarterly report, Paramount+ added 6.8 million subscribers in the first quarter.

If you're going to invest in Paramount, I probably wouldn't do so simply because of Top Gun— but I would say there is something to analyzing what makes a movie studio successful over time and investing in a consistent hit-maker. Pixar and Marvel are good examples of companies that you could have identified and made great returns on while they were making hit after hit. Eventually Disney bought both of them out.
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Web Traffic Update!
Web traffic can sometimes be a forward indicator of industry performance. Here is an interesting Twitter post showing recent trends.

Travel, streaming, crypto, and trading are falling while e-commerce and retail traffic is rising.

Let's look at some of the biggest companies in these sectors.

Airbnb $ABNB, Tripadvisor $TRIP, Booking $BKNG, and Expedia $EXPE are all popular sites to book travel plans. In the most recent quarter, all experienced dip in revenues.

Streaming :
Each of the biggest streaming companies ($DIS $NFLX $PARA $ROKU $WBD) have experienced sell-offs from their 52wk highs.

Paramount $PARA is currently holding up the best.

Trading / Crypto:

Fintech has probably faced the toughest sell-offs over the last few months. Despite their strong growth rates. Stocks like $COIN, $SQ, and $HOOD remain below 3.5x sales.

E-commerce / Retail:

Even with higher website traffic, these three companies saw lower revenue in their most recent quarters. Despite this, revenue remains slightly up historically. $AMZN $WMT $TGT

If you want to do more sector analysis, or stock comparisons, head over to http://viz.wiijii.co!

We have a list of one-click comparisons prepopulated with companies from each sector.
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Luka 🦉's avatar
$105.2m follower assets
Thanks for sharing Luca!

Interesting reveal here: "The most logical one, the bankers said, was combining some parts of Paramount — which owns networks like Nickelodeon and MTV, and the Paramount+ streaming service — with those owned by Comcast, the cable giant that owns NBCUniversal and the Peacock streaming service… But in the end, the board, Ms. Redstone and Bob Bakish, the company’s chief executive, did not feel compelled to pursue any of the combinations. They would continue to zig while Hollywood zagged.”
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