Hot on the heels of its major investor presentation yesterday, the former ViacomCBS turned Paramount media conglomerate has taken a bit of a beating in its stock price as the market has reacted.
Shares of Paramount tumbled more than 20% in early trading Wednesday following the detailed and revised financial forecasts including a bigger capital outlay which will see spending on streaming content jump from $2.2 billion last year to $6 billion by 2024.
Analysts speaking with Variety praised company management for taking a ‘bold’ approach and growing new subscribers faster than anticipated. But the increased spending outlay has reportedly drawn concern – especially with continued pressure on Paramount’s linear TV networks.
Paramount is aiming to have more than 100 million streaming subscribers by the end of 2024.
