Paramount Global (PARA) Stock Forecast & Price Target

Paramount Global experienced significant revenue growth across its business segments, with licensing and other revenue increasing by 17% year-over-year to $661 million, and the filmed entertainment segment revenue surging 67% year-over-year to $1.1 billion, bolstered by successful box office releases. The direct-to-consumer segment also showed robust performance, with total revenues rising 8% year-over-year and Paramount+ subscriber count increasing by 5.6 million to reach 77.5 million, supported by higher average revenue per user (ARPU) and advertising revenue growth. Additionally, global watch time per user increased by 20% year-over-year, effectively reducing churn rates, which further solidifies the company's positive outlook in the competitive media landscape.

Paramount Global's financial performance has shown significant weaknesses, with affiliate revenues falling by 6.7% year-over-year in 4Q24, alongside declining ad revenues of 4% due to licensing revenue fluctuations. The company's total revenue of $7.98 billion fell short of consensus expectations, compounded by a decrease in adjusted operating income before depreciation and amortization (OIBDA), resulting in a loss of $42 million compared to a smaller loss in the previous year. Furthermore, cash from operations plummeted by 70% year-over-year to $168 million, alongside a drastic 87% drop in free cash flow, indicating severe operational challenges and increased financial strain.