Here’s Why Paramount Global (PARA) Declined in Q3
Ariel Investment, an investment management company, released its “Ariel Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a loss of -7.47%, underperforming the Russell 2500 Value Index, which returned a loss of -4.50%, and the Russell 2500 Index, which returned a -2.82% loss. Inflation concerns, Russia-Ukraine tension, energy price, and Federal Reserve’s aggressive actions impacted the investors’ confidence in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Investment highlighted stocks like Paramount Global (NASDAQ:PARA) in the Q3 2022 investor letter. Headquartered in New York, New York, Paramount Global (NASDAQ:PARA) is an entertainment company. On December 1, 2022, Paramount Global (NASDAQ:PARA) stock closed at $20.17 per share. One-month return of Paramount Global (NASDAQ:PARA) was 29.54%, and its shares lost 35.08% of their value over the last 52 weeks. Paramount Global (NASDAQ:PARA) has a market capitalization of $13.208 billion.
Ariel Investment made the following comment about Paramount Global (NASDAQ:PARA) in its Q3 2022 investor letter:
“Leading entertainment company Paramount Global (NASDAQ:PARA) also traded lower on mixed earnings results. Strength in filmed entertainment and market share gains in streaming were partially offset by weakness in linear television. PARA’s decision to suspend services in Russia also negatively impacted earnings growth. Nonetheless, the company continues to display strong business fundamentals. PARA’s fresh array of global content is driving subscriber momentum worldwide across its directto-consumer platform with global subscriptions reaching nearly 64 million active users. Additionally, CBS was ranked the #1 network for the 20th consecutive quarter and Paramount Pictures opened five #1 films in a row, with Top Gun Maverick grossing over $1.3 billion to date. At today’s valuation, we believe PARA’s risk/reward is skewed sharply to the upside.”
Paramount Global (NASDAQ:PARA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Paramount Global (NASDAQ:PARA) at the end of the third quarter, which was 42 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
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