Paramount Global and President Trump will reportedly begin mediation in the coming days in his $20 billion lawsuit over CBS News’ “60 Minutes” interview with Kamala Harris.The two sides tapped a mediator for the case in recent days, The New York Times reported Monday, citing anonymous sources.The move comes as the deadline for Paramount’s $8 billion deal to merge with Skydance Media, which expired Monday, was extended 90 days. 4 CBS-parent Paramount and Trump have agreed on a mediator to settle his lawsui ...

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By the numbers, there is a lot to like about a prospective investment in Paramount Global (NASDAQ: PARA ). With an extremely attractive valuation, rock-solid IP and direct-to-consumer trends on a positive trajectory, an observer with no Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensa ...

Core Viewpoint - Paramount Global-B (PARA) shares have increased by approximately 3.9% since the last earnings report, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Group 1: Earnings and Estimates - Estimates for Paramount Global-B have trended downward over the past month, with the consensus estimate shifting down by 25.33% [2] - The most recent earnings report is crucial for understanding the important catalysts affecting the stock [1] Group 2: VGM Scores - Paramount Global-B has a Growth Score of B and a Momentum Score of A, indicating strong performance in these areas [3] - The stock also received an A grade on the value side, placing it in the top 20% for this investment strategy, resulting in an aggregate VGM Score of A [3] Group 3: Outlook - The overall trend of downward revisions in estimates suggests a negative outlook for the stock, with a Zacks Rank of 3 (Hold) indicating expectations for an in-line return in the coming months [4]

Core Insights - Paramount Global's stock has completed a Golden Cross, indicating strong upward momentum as the 50-day moving average crosses above the 200-day moving average [1] - The stock is trading above its five-day, 20-day, and 50-day exponential moving averages, reinforcing the bullish trend [2] - The Moving Average Convergence Divergence (MACD) indicator is at 0.27, signaling bullish territory, while the Relative Strength Index (RSI) is at 70.98, indicating overbought conditions but strong demand [3] Performance Metrics - Year-to-date, Paramount Global has gained 14.51%, with a 14.83% increase in the past month and a 7.5% rise over the last five days [4] - The stock's current price is $12.10, significantly above its 50-day and 200-day averages, suggesting continued buying pressure [1][2] Market Sentiment - Despite ongoing corporate changes, including a pending merger and leadership speculation, traders appear focused on momentum rather than internal issues [5] - The technical indicators suggest that as long as the stock remains above key moving averages, the bullish trend is likely to continue [5]

Core Viewpoint - JP Morgan analyst David Karnovsky maintains an Underweight rating on Paramount Global with a price target of $11, citing ongoing challenges from PayTV declines and expected losses through 2026 impacting overall OIBDA and free cash flow [1]. Group 1: Financial Performance and Projections - Following fourth-quarter earnings, Paramount expects Paramount+ to achieve domestic profitability in 2025, supported by an upcoming content slate and ARPU acceleration, with global watch time increasing by 20% and a 100 basis points decrease in user churn [2]. - For the first quarter, management anticipates benefits from fourth-quarter net additions, primarily from direct subscriptions, which should enhance ARPU, while also considering the advertising boost from Super Bowl LVIII in 2024 [3]. - The analyst raised adjusted OIBDA for 2025 to $2.99 billion (from $2.95 billion) and free cash flow to $576 million (from $353 million), reflecting improvements in DTC that offset declines in TV Media and Filmed Entertainment [5]. Group 2: Segment Performance and Challenges - The company reported a recovery in licensing, with domestic secondary licensing growing in double digits, while international licensing growth was slower, with buying occurring later in the broadcast season compared to historical norms [4]. - Paramount expects a worsening decline rate in affiliates in the first quarter due to recent renewals, and advertising will face challenges as it compares against Super Bowl LVIII, with underlying trends likely remaining consistent [5]. - Karnovsky noted that DTC should benefit from the upcoming content slate and continued ARPU gains, reducing the fiscal 2025 OIBDA drag to $155 million (from -$303 million), while also lowering TV Media OIBDA to $3.70 billion (from $3.76 billion) and Filmed Entertainment OIBDA to $48 million (from $113 million) [6]. Group 3: Strategic Updates - The quarter had limited strategic updates, which is expected given the anticipated first-half close of the Skydance transaction [7].

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes to identify favorable buying opportunities [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still pose risks due to downward earnings forecasts [10] Company Spotlight: Paramount Global - Paramount Global operates in the media and entertainment sector, offering content through brands like CBS, Showtime, and Paramount+ [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - Paramount Global's Value Style Score is A, supported by a forward P/E ratio of 6.96, making it attractive for value investors [12] - Recent upward revisions in earnings estimates and a Zacks Consensus Estimate of $1.63 per share highlight its growth potential [12]

Group 1 - Paramount Resources is a company that rewards shareholders primarily through significant returns rather than extensive promotional activities, focusing on accomplishments to drive interest [2] - The management of Paramount Resources believes in the cyclical nature of the oil and gas industry, emphasizing the need for patience and experience in navigating market fluctuations [2] Group 2 - The analysis of oil and gas companies, including Paramount Resources, involves a comprehensive review of their balance sheets, competitive positions, and development prospects to identify undervalued opportunities [1]

Core Insights - The Sonic the Hedgehog film franchise faced significant backlash in 2019 due to an unfavorable character design, leading to a redesign and a delayed release, which ultimately resulted in substantial box office success [2][4][10] Company Strategy - Paramount Pictures made a pivotal decision to redesign Sonic after the initial trailer received 90% negative feedback, which cost around $5 million but led to a franchise that has generated nearly $1.2 billion globally [4][5] - The studio's strategy involved engaging with fans and incorporating their feedback into the character development and marketing, which helped to build a loyal audience [10][14] Financial Performance - The first Sonic film opened to $58 million and grossed $302 million globally, while subsequent films saw increased earnings, with "Sonic the Hedgehog 2" earning $403 million and "Sonic the Hedgehog 3" reaching $485 million worldwide [10][11] - The franchise's success has transformed Sonic from a $70 million licensing business to generating over $1 billion in annual retail revenue [13] Future Developments - Paramount is planning a fourth installment of the Sonic franchise set to debut in 2027, alongside a "Knuckles" series for Paramount+, indicating a strategy to expand the franchise across multiple platforms [4][11][12] - The filmmaking team is committed to gradually introducing new characters to ensure they are well-developed and resonate with audiences [15][16]

Financial Data and Key Metrics Changes - The company reported core FFO of $0.19 per share for Q4 2024, bringing the total for the year to $0.80 per share, which is at the high end of guidance [7][33] - Same-store cash NOI growth in Q4 was flat at negative 0.1%, with full-year growth at negative 1.1%, which was better than expectations [33] - The company ended the year with approximately $461.4 million in cash and restricted cash, which would increase to $546.5 million after accounting for the sale of 900 Third Avenue [16][37] Business Line Data and Key Metrics Changes - In Q4, the company leased approximately 109,000 square feet, with 53% occurring in New York and the balance in San Francisco [21] - The weighted average term for leases signed during Q4 was 11.1 years [21] - For the full year, the company leased a total of 763,500 square feet, which is 3% ahead of last year [8][9] Market Data and Key Metrics Changes - In New York, approximately 57,000 square feet were leased in Q4, with a robust pipeline remaining despite not meeting revised targets [9][10] - San Francisco's leasing activity was over 40% higher compared to the previous year, with approximately 339,000 square feet leased in total [12][13] - The New York market saw the highest quarterly leasing activity since Q4 2019, exceeding the five-year quarterly average by 73% [25] Company Strategy and Development Direction - The company is focused on high-quality, strategically located spaces, particularly in New York's core submarkets, benefiting from a flight to quality trend [10][11] - The company aims to lease between 800,000 and 1 million square feet in 2025, despite challenges from significant lease expirations [8][40] - The company achieved a GRESB five-star rating for the sixth consecutive year, highlighting its commitment to sustainability [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term appeal of their properties, particularly in New York, despite some challenges in San Francisco [10][28] - The return to office trend is expected to drive increased leasing activity in 2025, particularly in San Francisco [28][90] - Management noted that the market is showing signs of improvement, with increased tenant demand and a narrowing gap between buyer and seller expectations [17][126] Other Important Information - The company closed the sale of a 45% interest in 900 Third Avenue, raising approximately $95 million in net proceeds, which underscores the value of its assets [14][15] - The company is actively exploring strategic partnerships and potential acquisitions, maintaining a flexible capital allocation strategy [17][107] Q&A Session Summary Question: What caused the lease that fell through? - Management indicated that the reasons were not entirely known, but they are optimistic about securing a creditworthy tenant for the space soon [43][44][45] Question: What is the status of non-core assets like 111 Sutter Street? - Management stated that there is no risk to the balance sheet regarding 111 Sutter, and they are working on selling Market Center, expecting a resolution by Q2 [50][52] Question: How confident is the company in achieving the 2025 leasing target? - Management expressed confidence based on current market dynamics and the existing pipeline of leases [56][60][62] Question: What are the plans for backfilling large tenant move-outs? - Management is actively negotiating leases and enhancing amenities to attract new tenants for upcoming vacancies [88][90][114] Question: What is the outlook for large tenant leasing activity? - Management noted an increase in inquiries from larger tech companies, indicating a potential recovery in leasing activity [127][128]