Paramount Global (PARA) Stock Forecast & Price Target

Paramount Global demonstrated strong financial performance across its business segments, with licensing and other revenue experiencing a year-over-year increase of 17%, totaling $661 million. The Filmed Entertainment segment saw a remarkable growth of 67% year-over-year, driven in part by successful theatrical releases, which contributed to revenues rising to $1.1 billion. Additionally, the Direct to Consumer segment's revenue growth of 8% year-over-year, fueled by an increase in Paramount+ subscribers, reaching 77.5 million, reflects effective customer engagement strategies and positive subscriber trends.

Paramount Global's financial performance in the fourth quarter of 2024 revealed a concerning trend, with affiliate revenues decreasing by 6.7% year-over-year to $1.869 billion, exacerbated by expectations of further declines in the first quarter of 2025. Additionally, revenue fell to $7.98 billion, slightly below consensus estimates, driven by weaker-than-forecasted advertising trends and losses in the film segment, contributing to an adjusted OIBDA loss of $42 million. Operational cash flow plunged by 70% to $168 million, while free cash flow was down 87% to $56 million, indicating significant operational challenges and raising concerns about the company's financial stability.