Why Paramount Global Stock Fell 15.9% Last Month
Shares of movie studio and video streamer Paramount Global (NASDAQ: PARA) dropped 15.9% in December 2022, according to data from S&P Global Market Intelligence. This was a roller-coaster ride with several distinct twists and turns.
First, Paramount shares dipped 11% in two days after CEO Bob Bakish spoke at an investor conference, hinting that ad sales were running slower than expected in the ongoing fourth quarter. Yet all was forgiven three days later when the Paramount+ streaming service was launched in the German-speaking parts of Europe. The stock gained 8.4% in the two days after that announcement. The streaming platform is now available in 45 global markets on every continent except Africa.
The bears returned the following week. Paramount's stock fell 8.8% on Dec. 15, dragged along in a marketwide crash inspired by the Federal Reserve lifting interest rates by another 0.5%. The higher rate won't affect Paramount's subscription revenue or viewer acquisition efforts much, but advertisers will probably hold on to their marketing budgets a bit tighter when Fed rates run high. Ad sales accounted for 23% of Paramount's total third-quarter sales, so any news that might hurt or help ad sales also has the power to move Paramount's stock price.
Source Fool.com
