Why Paramount Global Shares Are Falling Following Netflix's Earnings Report

Several notable names in the streaming and entertainment sector, including Paramount Global PARA PARAA PARAP, are trading lower in sympathy with Netflix Inc NFLX after the company reported first-quarter earnings results and guided for a decline in global streaming paid memberships. 

Similar to Netflix, Paramount produces original motion pictures and owns a library of 2,500 films. Paramount operates a number of streaming services, most notably streaming service Paramount+ and Pluto TV.

Netflix reported quarterly earnings of $3.53 per share which beat the analyst consensus estimate of $2.90. Netflix also reported quarterly sales of $7.87 billion which missed the analyst consensus estimate of $7.93 billion by 1%. Global streaming paid net additions were down 200 thousand. 

Netflix sees second-quarter revenue of $8.053 billion, below the analyst consensus estimate of $8.21 billion. Netflix also sees EPS of $3.00, below the analyst consensus estimate of EPS of $3.01. Netflix also guided for second-quarter global streaming paid memberships of 219.64 million, which represents a decrease of 2 million from the first quarter.

According to data from Benzinga Pro, Paramount has a 52-week high of $47.46 and a 52-week low of $27.25.