Wall Street Punishes Hollywood Stocks as Paramount Disappoints on Q3 Ad Sales
Investors punished shares of Hollywood’s major studios on Wednesday after Paramount Global reported that advertising sales slumped during the third quarter , and executives project there won’t be any improvement during the final three months of the year.Paramount spooked Wall Street when it reported profit fell 57% during the quarter, sending shares down nearly 10% during the first hour of trading . Entertainment stocks fell in tandem, with Warner Bros. Discovery giving up 4%, Disney 2% and Lionsgate 2.5%.Advertising at Paramount, anchored by its CBS broadcast network, fell 4% from the year-ago period to $363 million during the quarter. Chief Executive Bob Bakish told analysts on a conference call that ad sales will continue to be soft for the foreseeable future for its television media division.
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Paramount Misses Expectations as Q3 Profit Plunges 57% on Weak Ad Sales
Bakish praised the company’s strong content offerings, and said he expects that the studio’s blockbuster hit “Top Gun: Maverick” will push revenue higher once it debuts on Paramount+ in the next few months. He also confirmed that Paramount will begin to raise streaming prices as the streaming war heats up against Disney, Warner Bros. , and Netflix.
Investors punished shares of Hollywood’s major studios on Wednesday after Paramount Global reported that advertising sales slumped during the third quarter, and executives project there won’t be any improvement during the final three months of the year.
Paramount spooked Wall Street when it reported profit fell 57% during the quarter, sending shares down nearly 10% during the first hour of trading. Chief Executive Bob Bakish told analysts on a conference call that ad sales will continue to be soft for the foreseeable future for its television media division.
