12 Best Streaming Service Stocks to Buy According to Analysts

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8) Paramount Global (NASDAQ:PARA)

Average Upside Potential: 12.8%

Number of Hedge Fund Holders: 44

Paramount Global (NASDAQ:PARA) operates as a media, streaming, and entertainment company. In Q3 2024, the company saw significant improvement in DTC (Direct to Consumer) business, with adjusted OIBDA improving $287 million YoY to reach $49 million. Furthermore, the company saw continued momentum at Paramount+, with revenue growth of 25% YoY and additions of 3.5 million subscribers in Q3 2024. Paramount Global (NASDAQ:PARA)’s streaming services, mainly Paramount and Pluto TV, continue to represent a growth area for the company.

DTC’s subscription revenue saw an increase of 7%, fueled by YoY subscriber growth and price increases for Paramount+. Also, DTC advertising revenue rose 18% driven by growth from Paramount+ and Pluto TV. Paramount Global (NASDAQ:PARA)’s DTC segment successfully delivered profitability for the second quarter in a row, improving by over $1 billion over the past 4 quarters, and, throughout the company, it continues to successfully execute non-content cost reductions that will result in $500 million in annual run rate savings.

Paramount Global (NASDAQ:PARA) has a vast and valuable content library, which spans decades of film and television production. This library reflects a significant asset that can be monetized via licensing deals or used to strengthen its streaming offerings.

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