Is Paramount Global (PARA) the Best Stock to Buy in Falling Markets Now?

As the stock market continues to fluctuate, investors are on the hunt for stable and predictable investments that can weather the storm. One company that stands out in this regard is Paramount Global (PARA), the parent company of Paramount+ and other media assets. With a diversified portfolio of businesses and a strong content library, Paramount Global has proven to be a resilient investment in volatile markets. Let's explore why Paramount Global could be the best stock to buy in falling markets now.



Paramount Global's diversified portfolio of businesses, including its streaming services and traditional media assets, contributes to its resilience in volatile markets by providing multiple revenue streams and allowing it to maximize the value of its content across various distribution channels. This strategy enables the company to extract more return on investment for its content compared to its competitors, as it can access and serve a broader range of consumers.

For example, Paramount+ has achieved notable success with its streaming originals, holding a 5.8% share of US demand in Q3 2024, despite having just a 2.0% supply share. This 2.8x demand-to-supply ratio was second only to Apple TV+ (3.2x) among the eight premium SVODs for the quarter. This indicates that Paramount+ originals are highly sought after by audiences, driving subscriber acquisition and engagement.

Additionally, Paramount Global's approach to licensing content is a valuable revenue lever, as syndication has always been for linear TV. Some of its original content, particularly CBS series, thrives on third-party platforms, attracting subscribers to those services. For instance, Paramount Network's "Yellowstone" acts as a major subscriber draw for Peacock, cable's most popular show in recent years. This raises the question of how many subscribers "Yellowstone" could attract if it were available on Paramount+ instead of Peacock, and whether the additional subscriptions would offset the lost licensing revenue.

Finding the right balance between licensing revenue and SVOD exclusivity will be crucial for the incoming Skydance team. By leveraging its diversified portfolio of businesses, Paramount Global can navigate volatile markets more effectively and maintain its competitive position in the streaming landscape.

Paramount Global's strategic approach to content licensing and bundling enhances its competitive position and subscriber retention in a crowded streaming landscape. By leveraging popular content across platforms, offering exclusive content and franchises, bundling with Walmart+, and utilizing its global content capabilities, Paramount Global can maximize revenue, attract and retain subscribers, and differentiate itself from competitors.

In conclusion, Paramount Global's diversified portfolio of businesses, strategic approach to content licensing and bundling, and strong financial performance make it an attractive investment in falling markets. With its stable and predictable nature, Paramount Global offers investors a safe haven in volatile market conditions. As the market continues to fluctuate, consider adding Paramount Global (PARA) to your portfolio to weather the storm and capitalize on its long-term growth potential.