Entering text into the input field will update the search result below

Recommended For You

Comments (13)

nerd_rage profile picture
I'd like to hear more about "that consistent and growing cadence of tent-pole series" especially when they're competing with NFLX and AMZN as incumbents who represent the default streaming options, and DIS and T with their far bigger brands, not to mention AAPL with their far greater financial resources if they are really serious about competing in streaming and this isn't just another one of their side hobbies.

Subscribers opt for two or three services and then stop. They want the big ones that represent the best value so there's a lot of overlap in the ones that make the cut for any given household. That implies a very high cutoff bar, at the top four or maybe five on the outside and it's too easy to see VIAC just falling below that cutoff.

Still far too vague about how VIAC is really going to survive this increasingly vicious battle, and far too vague on international, which is where the battle will be decided.

I'm not at all impressed by their subscription numbers, in a climate that is unnaturally favorable to streaming. CBS All Access has been in operation for 5 1/2 years now and they are only up to 13.5M subscribers? Disney+ has been operating for six months, one-tenth the time that CBS All Access has been in operation, and has more than three times the subscribers already. That just shows you how crucial it is to have huge brands that are managed well, and to make global expansion moves far faster than CBS All Access has been doing. VIAC has middling brands that are being managed in a middling way. That's not going to cut it.

VIAC gets credit for getting into streaming on its own earlier than most competitors but given their size and middling brands, it's not going to be enough. They need to be acquired by a more viable competitor, or at least their streaming assets sold off a la Disney and Fox. I doubt AMZN and AAPL wants all of VIAC. Only parts of the business are useful for the future.
TauAlpha profile picture
Very nice strategic response. Good metrics. When I followed all of the downgrades it seemed that the analysts were overreacting. I guess this contributed to the shares being extremely oversold. I think that CBS will be a $50 stock when advertising and sports comeback. Distributing content through Pluto may be a game changer so long as the Internet can keep up and penetrate that last 20% of households.. But, I think that Showtime should consolidate with All Access to compete with Disney and Netflix as Star Trek, Piccard and Twilight Zone are not enough new content. I noticed that All Access isn't even mentioned in most articles discussing streaming. But, as management noted, this is all a work in progress.
LazyGringo profile picture
Up 20% in two days now, getting a little more sensible. And the more it goes up the less likely the dividend is cut and we will have something like a 4% secure dividend. But the real money to be gained here is of course takeover talk, and an actual takeover. As the market rises (ahead of the actual real world covid crisis recovery) there is more and more pressure on the big boys to start making acquisition offers. THis stay at home crisis puts a spotlight on the value of stop quality media content and media brands, and VIAC has them in spades. VIAC still selling for only about the value of Paramount Pictures.
LazyGringo profile picture
Up 6.5% today so 16.5% in two days. I bet we are just getting going though. It bounced off 20 two weeks ago and I bet it breaks through next time, within a week probably.
Pooh_Lover profile picture
This thing read like an analyst day instead of a quarterly earnings report. Good quarter though. Sonic got robbed by not being given the chance to be released in China due to corona or it prob would have cracked half a billion. I look at the Fall with NFL games being played in front of no fans possibly which means everyone will be watching at home which you would think will bring in more ad spending. I'm waiting for the dividend announcement before doubling up. Should be announced any day now. You never know with this group....you get a nice call today then they rob you tomorrow.
Lazy Gringo... good comment.
VIAC will get there...just going to take some patience.
As you noted, it’s undervalued, but the CC was encouraging and I felt it was quite positive.
As everyone knows, but sometimes under appreciates the power, is VIAC incredible depth of content across the 3 main areas management noted as their core growth and income sectors.
To me what was instructive, is just how creative they are in using the content across so many platforms- many of which, I suspect many investors had not considered as cross applications.
Additionally, they reinforced the point that they are not going to let any user dominate their
content (exclusive use, etc), nor part with key drivers.
I certainly liked their forward thinking in streaming. They ( unlike common investor perception or current conventional thinking) are absolutely looking into the future and plan on aggressively expanding into new creative programming.
... and they have the young, creative team to make that happen.
So, unlike many feel, they are not just going to sit back and rest on their library and old content for the future.
Importantly, their vast library and TV show content is paying off now because of the
Stay at Home issue, Etc. Seems they pointed out, in numerous cases, a number of their competitors, have a much slimmer portfolio to offer their subscribers.
Like many investors ( and institutional funds as well), I made an expensive mistake (/pre Covid) through an ill timed purchase of 20,000 shares at $33ish. I had watched it fall from the mid 40’s and decided that it was a decent deal, particularly in view of their dividend.
At the time of purchase, I wrote covered calls on the entire position to mitigate some downside to about 30.
Unfortunately, as we experienced, the stock collapsed to $10/at one point.
That was just plain spooky,.
Adding salt in the wound, were a significant number of analysts who had previously touted the stock to $50 and much higher, now calling it a an essentially piece of garbage and stating its now worth only $10-19.
Wow, all in a matter of a month or so.
Anyway I purchased another 10,000 shares to cost average down some.
I’m still well underwater. Mid 20’s is cost average
I did sell off a few thousand shares and took a tax loss against the gain on the expired written calls. About a week ago, I became discouraged and frustrated after reading the drum beat, week after week, of the numerous commentary and reports on just how much VIAC really sucked, and were simply a media buggy whip company.
Anyway, I came close to bailing. Today, after the conference call, I decided that they are going to do just splendidly in the future. It’s going to take a couple of years, but it’s going to be really a good deal at today’s share pricing. Anyway, I’m put my helmet on, dug my heels in, and actually considering adding to the position, but probably will wait until the 2nd Quarter numbers are out- or things look really gloomy just prior.

Good luck to the VIAC longs- be patience it’ll work out fine in the next 18-24 months or sooner.
Long VIAC with a good part of position having Jan 2022 calls with $30 to $35 strikes on them.
Stay well all.
LazyGringo profile picture
I agree. Just accumulate the hold. I too took a tax loss on some early shares I bought but then ought even more after a month when the stock dropped to the mid teens. Now I think we will be back in the 20's soon and from there await a takeover or else a gradual recovery. Either way the 30's are very realistic and the 40's possible.
TauAlpha profile picture
@obiwan48 Very similar to my decisions, except divide your share counts by 10. This is a rare case for me where I don't have much concern over my losses.
LazyGringo profile picture
VIAC deserves a LOT more than a 10% pop on this earnings beat. In fact the stock deserves to be at least ten points higher. The stock is still priced for doomsday as if it might never recover. The current market cap isnt even high enough to encompass the value of Paramount much less CBS and the largest trove of undervalued global name brand cable channels there is, and the ones with the most potential for rejuvenation in streaming video. VIAC does need a deep pockets suitor or partner and of course covid to get behind us,, but except for some production delays, the loss of some sports viewing and a few theatrical films that will have to go straight to PPV, covid 19 really hasnt affected them that much. I think the worst thing was losing college basketball, but that is water under the bridge and a one-time hit, and does not account for the 50-70% drop in the stock. Also, once takeover merger talk begins, this stock is the one to be in. Get it while it is super cheap and enjoy the excellent dividend too, which they actually pay.
nerd_rage profile picture
Investors are leery that Shari is being irrational by not doing what needs to be done: sell to AAPL or AMZN. Then the value can be unlocked.

"Also, once takeover merger talk begins, this stock is the one to be in."

With bells on! But when is that happening? Is it happening?
Basit Saliu profile picture
AAPL and AMZN are both trillion $ companies they can afford -10 times to pick up ViacomCBS.
Pooh_Lover profile picture
@LazyGringo The funny thing is every other stock especially tech is pretending like 2020 isn't happening and trading on 2021 and beyond yet here we are with this thing. Well all value actually.
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!

About PARA Stock

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PARA

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.