10 Best NASDAQ Stocks Under $20 to Buy

8. Paramount Global (NASDAQ:PARA)

Number of Hedge Fund Holders In Q2 2024: 39

Share Price: $10.64

Paramount Global (NASDAQ:PARA) is one of the biggest media and entertainment companies in the US. It has a variety of lucrative platforms in its portfolio, such as CBS, MTV, and Paramount Pictures. These provide Paramount Global (NASDAQ:PARA) with a sizeable business which enables it to operate with a fortress balance sheet that has $2.3 billion in cash and $6.5 billion in receivables. The firm is currently on track to be acquired by Skydance, in a deal that will shape its narrative in the future. While Paramount Global (NASDAQ:PARA) is one of the most well recognized media names in the US, the firm has struggled with viewership drops and tough competition in the streaming market that is dominated primarily by Netflix. Consequently, word on the street is that it is considering selling some of its CBS holdings to raise debt and streamline the balance sheet. Skydance also aims to streamline Paramount Global (NASDAQ:PARA)’s operations by giving it a technology based focus. The firm’s Paramount Plus division lost 2.8 million subscribers in Q2 after the winding down of an agreement in South Korea.

Ariel Investments mentioned Paramount Global (NASDAQ:PARA) in its Q2 2024 investor letter. Here is what the fund said:

“Also in the quarter, we initiated a position in entertainment company, Paramount Global (PARA). Shares tumbled amidst merger talks, which coincided with leadership changes at both the executive and Board level. Continued pressures around the linear TV ecosystem and competition in streaming further drove the stock to new lows. We have held steadfast to our PARA holdings in other portfolios amidst the merger saga and this further price decrease presented an attractive buying opportunity, particularly as the company expects to deliver significant earnings growth in 2024 and to reach Paramount+ domestic profitability in 2025. In our view, the underlying value of the company’s proprietary content and media assets are not reflected in the recent share price.”