Why Paramount Global Stock Is Diving

Paramount Global Class B PARA shares are trading lower by 7.4% to $11.90 Wednesday morning. The stock is trading lower in sympathy with peer media company Warner Bros. Discovery, which traded lower after the company reported worse-than-expected third-quarter financial results.

What Happened With WBD Earnings?

Warner Bros. Discovery, Inc reported Q3 FY23 revenue growth of 1% year-on-year to $9.98 billion, just below the expected $10.00 billion. They had an EPS loss of 17 cents, missing the expected loss of 6 cents.

In their studios segment, revenues reached $3.23 billion, up 3% year-on-year, driven by the success of the film Barbie, which became the highest-grossing film in Warner Bros. history, generating nearly $1.5 billion in global box office sales...Read More

Why This Matters To PARA Investors

The media and entertainment industry can be highly competitive and subject to rapidly changing consumer preferences, technological advancements and content production dynamics.

When a major player in the industry faces challenges, it can raise concerns about these broader industry trends and impact the stock prices of related companies.

The disappointing earnings and financial results from Warner Bros. Discovery might have increased perceived risk in the media and entertainment sector.

Investors may view the sector as a riskier investment, which can lead to a broader sell-off of stocks in the industry, including Paramount Global.

According to data from Benzinga Pro, PARA has a 52-week high of $25.93 and a 52-week low of $10.51.