Netflix and Paramount stocks move in premarket trading due to earnings, guidance, and potential deals.
Netflix Inc. (NASDAQ: NFLX) and Paramount Global (NASDAQ: PARA) are among the most active stocks in premarket trading today. Both companies have experienced significant price movements driven by recent earnings reports and potential deal news.
Netflix Shares Down 6.6%, Paramount Gains Over 7% in Premarket
Netflix shares are down 6.64% in premarket trading, priced at $570.02, despite reporting strong first-quarter earnings. The streaming giant posted a net income of $2.3 billion, or $5.28 per share, up from $1.31 billion, or $2.88 per share, a year ago.
Revenue also grew by 15% to $9.37 billion. However, the company’s tepid second-quarter sales guidance, which fell short of analysts’ expectations, has led to a decline in its stock price.
On the other hand, Paramount Global is seeing a surge in its stock price, up 7.47% to $11.79 in premarket trading. The media conglomerate is reportedly in discussions with Sony Pictures Entertainment and Apollo Global Management for a potential joint bid.
Why Paramount and Netflix Shares are Moving Today
If Sony and Apollo’s acquisition is successful, Sony could operate Paramount as a label within its own media empire, leveraging Paramount’s marketing and distribution capabilities.
However, the deal may face regulatory hurdles due to federal regulations on foreign ownership of U.S. broadcast stations. This could affect Sony, a Japanese corporation, in handling Paramount’s U.S. broadcast assets, such as CBS.
In other news, Netflix announced a strategic shift for 2025, stating that it will stop reporting subscriber numbers and focus on a new, undisclosed performance metric. This move comes despite the company adding 9.3 million subscribers in the first quarter, significantly surpassing analyst expectations. The strong subscriber growth initially drove a 5% increase in Netflix’s stock price, but concerns over sales guidance ultimately led to the price settling back down and dropping.
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Originally Posted April 19, 2024 – Netflix and Paramount Among Major Movers in Premarket Trading Today, Here’s Why
Disclosure: Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing ofthis article. Please consult our website policy for more information.
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