Core Viewpoint - Larry Ellison's support for the $500 billion Stargate AI infrastructure project may facilitate the merger between Paramount Global and Skydance Media, despite regulatory concerns and opposition from figures like Elon Musk [1][2]. Group 1: Merger Dynamics - Ellison's backing of Stargate is seen as a strategic move to help his son David's Skydance Media secure regulatory approval for its $8 billion merger with Paramount [2]. - The new Federal Communications Chair Brendan Carr has expressed concerns regarding the merger, particularly about alleged bias from Paramount-owned CBS in the upcoming 2024 Presidential election [3]. - Paramount is reportedly considering settling a $10 billion lawsuit filed by Trump against the company over alleged bias, which could influence the merger review process [3][4]. Group 2: Financial Implications - Following the announcement of the Stargate project, Oracle's shares rose by 7% and an additional 5% in after-hours trading, indicating positive market sentiment towards Ellison's ventures [11]. - Skydance is offering Paramount shareholders $15 in cash for approximately half of their shares as part of the merger agreement [14]. - Paramount's stock is currently trading below $11, reflecting investor skepticism about the company's future value post-merger [15]. Group 3: Regulatory Scrutiny - The House China Select Committee, led by Rep. John Moolenaar, has called for a review of the Skydance-Paramount merger to assess potential Chinese influence, particularly concerning Tencent's involvement [6][10]. - Tencent is expected to hold less than a 5% stake in the combined entity, with assurances that it will not have an attributable interest in CBS' licensed broadcast stations [8][9]. Group 4: AI Project Significance - The Stargate project, which involves Oracle, OpenAI, and SoftBank, aims to build large data centers and is positioned as a significant advancement in AI infrastructure [10]. - Ellison highlighted the potential of AI in early cancer detection and personalized vaccine development during the announcement, showcasing the project's broader implications for healthcare [12][13].

Transaction Agreement and Investment - Paramount Global has entered into a transaction agreement with Skydance Media, which is expected to bring significant economies of scale and synergies [1] - The company is anticipating a large investment in 2025 [1] Financial Performance - In the last quarter, Paramount Global reported an increase in the number of subscribers, although specific figures were not provided [1] Analyst's Position - The analyst holds a beneficial long position in Paramount Global shares through stock ownership, options, or other derivatives [2]

Group 1 - The Conservative Income Portfolio aims to target value stocks with high margins of safety while reducing volatility through well-priced options [1][5] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and focuses on capital preservation in its income investing strategy [2][5] Group 2 - The Covered Calls Portfolio is structured to provide lower volatility income investing with an emphasis on capital preservation [2] - The fixed income portfolio seeks to acquire securities that have high income potential and are significantly undervalued compared to peers [2][5] - Trapping Value's team has over 40 years of combined experience in generating options income while prioritizing capital preservation [5]

Core Insights - The JPMorgan analyst report indicates a generally positive trend in global downloads and daily active users (DAUs) for the streaming sector in November, with most platforms showing sequential growth [1]. Company Summaries - **The Walt Disney Company**: Disney+ experienced a 6% month-over-month decline in downloads in November, but this was an improvement after two months of double-digit declines. Key releases like "Deadpool & Wolverine" contributed to this uptick, and upcoming premieres in December are expected to further enhance engagement [3]. - **Hulu**: Downloads fell by 5% month-over-month in November, with daily active users decreasing by 1%, following two months of growth [4]. - **Paramount Global**: Paramount+ saw a significant 32% month-over-month increase in downloads in November, attributed to the premieres of "Landman" and "The Agency," marking its largest sequential gain since February 2024 [4]. - **Netflix Inc**: Global downloads increased by 14% year-over-year in November, recovering from a -2% decline the previous year. This growth is linked to new content, including a live boxing event, with expectations for further improvement in December [5][6]. - **Amazon.com Inc**: Prime Video's downloads decreased by 7% year-over-year, and daily active users fell by 8%. However, a strong December is anticipated due to the upcoming premiere of "Beast Games" [6]. - **Comcast Corporation**: Peacock's downloads rose by 31% month-over-month in November, likely due to election day coverage and the debut of "Twisters," along with a promotional offer [7]. - **Warner Bros. Discovery**: Max downloads increased by 20% month-over-month in November, driven by the platform's launch in several Asian markets. However, downloads in the U.S. and Canada fell by 5% [8]. Industry Outlook - Paramount+ and Max are highlighted as having strong performance in November, while Netflix and Prime Video are expected to have a robust December due to upcoming content releases [9].

Core Insights - Zacks Premium offers various tools to help investors maximize stock market opportunities and invest confidently [1][2] Zacks Style Scores - Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperforming the market [4] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [5] - **Growth Score**: Evaluates a company's financial health and future growth potential through earnings and cash flow analysis [6] - **Momentum Score**: Targets stocks with upward or downward trends, utilizing price changes and earnings estimate shifts [7] - **VGM Score**: Combines the three Style Scores to identify stocks with attractive value, growth, and momentum [8] Zacks Rank and Earnings Estimates - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in stock selection [9] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [10] Stock Selection Strategy - To optimize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [12] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [13] Company Spotlight: Paramount Global - Paramount Global operates in the media and entertainment sector, offering content through brands like CBS, Showtime, and Paramount+ [15] - Currently rated 3 (Hold) with a VGM Score of A, Paramount Global has a Momentum Style Score of B and a recent share price increase of 0.3% [16] - The company has seen seven analysts raise their earnings estimates for fiscal 2024, with the consensus estimate increasing by $0.36 to $1.86 per share [16] - With strong Style Scores and a solid Zacks Rank, Paramount Global is recommended for investors' consideration [17]

Core Viewpoint - Paramount's leadership structure is expected to undergo significant changes following the $8 billion merger with Skydance Media, with potential departures of two co-CEOs and a consolidation of television assets under new leadership [1][5][11]. Leadership Changes - The merger will likely result in the exit of co-CEOs Chris McCarthy and Brian Robbins, while George Cheeks may remain due to his relationship with Skydance's deputy Jeff Shell [5][6]. - David Ellison, the current CEO of Skydance, will lead the combined company as chairman and CEO, indicating a major restructuring of Paramount's operations [1][10]. Asset Consolidation - Ellison plans to merge all of Paramount's television properties, including CBS and MTV, into a single unit to adapt to declining viewership of linear broadcasting [1][11]. - The consolidation is deemed necessary as Paramount's film studio is not expected to turn a profit this year, highlighting the need for operational efficiency [12]. Financial Aspects - Skydance is set to acquire the Redstone family's 77% stake in Paramount's parent company, National Amusements, for $2.4 billion, along with a commitment to pay $15 per share for up to $4.3 billion of common shares [15]. - Paramount's stock closed at $10.92, reflecting the market's response to the ongoing changes and merger developments [16]. Background Context - The leadership transition follows the ousting of former CEO Bob Bakish, with the current co-CEOs managing the company since late April [13]. - Ellison has been meeting with Paramount personnel to understand the company's operations in preparation for the merger [8].

Core Insights - The leadership structure at Paramount is expected to change significantly following the Skydance-Paramount merger, with only George Cheeks likely to remain in his position as the new CEO David Ellison takes over [1][2] - The merger is anticipated to lead to further consolidation of Paramount's TV assets, with plans to combine various networks under one division [8][12] - The merger is projected to close in the first half of next year, with minimal regulatory hurdles expected under the new administration [12][9] Leadership Changes - George Cheeks is well-positioned to stay due to his oversight of CBS, which has performed well and has the least overlap with Skydance [3][4] - Brian Robbins, overseeing Paramount Pictures and Nickelodeon, is expected to depart as Dana Goldberg from Skydance is set to lead Paramount's film business [5][6] - Chris McCarthy has managed successful series within the Taylor Sheridan universe and the revamp of Paramount+, but his future remains uncertain [6][11] Financial Implications - Paramount has already implemented cost cuts and layoffs, achieving over $500 million in savings, with plans to reduce U.S. staff by 15%, equating to around 2,000 positions [7][11] - Executives have been awarded stock grants and bonuses to incentivize their retention during the merger transition [11][12] Strategic Direction - David Ellison's strategy includes leveraging AI and technology to enhance the merged entity's operations, with a focus on integrating Paramount+ [13][14] - The merger is expected to streamline operations and create efficiencies across Paramount's various media assets [8][12]

Core Viewpoint - Paramount Global's shares have significantly underperformed compared to its peers and the broader market, with a year-to-date decline of 26.4% against a 14.2% increase in the Zacks Consumer Discretionary sector [1] Financial Performance - In Q3 2024, Paramount's revenues fell by 6% year-over-year to $6.73 billion, with Direct-to-Consumer revenues increasing by 10% while TV Media revenues and Filmed entertainment revenues dropped by 6% and 34% respectively [3] - The company anticipates a decline in licensing revenues for the full year 2024 compared to 2023, with a 9% year-over-year decrease in licensing and other revenues reported in Q3 [4] - The Zacks Consensus Estimate for Q4 2024 earnings is projected at $0.20 per share, reflecting a 25% increase over the past 30 days, while revenues are expected to reach $8.11 billion, indicating a year-over-year growth of 6.17% [12] Subscriber Growth and Content Strategy - Paramount+ added 3.5 million new subscribers in the reported quarter, reaching a total of 72 million, with revenues for the platform growing by 25% year-over-year [7] - The company expects continued subscriber growth for Paramount+ in Q4, driven by a strong lineup of original content and the CBS fall schedule [9] - Global Average Revenue Per User (ARPU) increased by 11% in Q3 2024, although growth may be tempered in Q4 due to existing pricing structures [8] Strategic Initiatives - Paramount is set to acquire Skydance Media in an all-stock transaction valued at $4.75 billion, aimed at leveraging Skydance's resources to reduce Paramount's $14 billion debt [15][17] - The company expects to receive nearly $500 million from the sale of its equity interest in Viacom18, with the transaction anticipated to close in Q4 2024 [6] Advertising Outlook - D2C advertising revenues grew by 18% year-over-year in Q3, with expectations for double-digit growth in Q4, although TV Media advertising growth is projected to mirror the 2% decline reported in Q3 [4][5]

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

More cash is set to flow for Paramount Global executives as the company said two will each receive bonuses of $1 million when the company’s sale to Skydance closes as part of a “transaction award program.” Doretha Lea, EVP, Global Public Policy and Government Relations, and Nancy Phillips, EVP, Chief People Officer are eligible for the payouts, which are contingent on the deal closing to “ensure the successful operation of the Company during the period prior to the completion of the Transactions and to pro ...