Most of the major streaming video providers have taken it on the chin today. Perhaps the leading loser in the streaming space today was Paramount (NASDAQ:PARA), which lost nearly 7% after its CEO offered a warning on advertising rates.
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With many streaming services turning to an ad-supported tier to cut costs to customers, advertising rates take on a whole new value. Paramount CEO Bob Bakish noted that ad rates would be “a bit below” those seen in the previous quarter.
This news joins earlier reports from Paramount that looked like a pocket disaster in the making. Paramount’s earnings report, issued back in November, featured misses on earnings and revenue alike. Advertising revenue was down 2% when that report came out. Therefore, seeing another warning so soon likely spooked investors.
However, Paramount did have one major high point to note. The company boasted six different films that came in number one at the box office on their opening weekend.
Despite this, it’s clear that analyst sentiment is weighted heavily against Paramount. Paramount currently has more Sell ratings than Buys. It also has as many Hold ratings as Buys. It’s clear that much of the analyst community is either standing back or getting out.
