Good Evening! Thursday was a gloomy day for U.S. equities as investors digested economic data that was hotter than anticipated and hawkish Fed comments.
The S&P 500 fell 1.38%, while the Dow Jones declined 1.26%. The Nasdaq Composite sank 1.78%.
TWO STEPS FORWARD, ONE STEP BACK
Before the opening bell, Paramount Global (PARA) published its fiscal fourth-quarter profits, underperforming on both the top and bottom lines due to disappointing advertising revenue and accelerating streaming losses.
- Revenue: $8.13 Billion vs. $8.17 Billion Expected
- Earnings Per Share: $0.08 vs. $0.24 Expected
- Paramount+ Net Additions: 9.9 Million vs. 9.9 Million Expected
Advertising revenue has been a challenge. Ad growth in the company’s TV media segment decreased 7% year-over-year in the quarter due to reduced impressions and an adverse foreign currency effect. Overall, the company’s quarterly ad revenue decreased by 5%, after a 2% loss in Q3.
Two steps forward, but one step back… Paramount announced that it would combine its Paramount+ and Showtime streaming services into a single product called “Paramount+ with Showtime.” However, As a result of the merger between Paramount+ and Showtime, the business has presented a reorganization plan that unites Showtime and MTV Entertainment Studios. After this disclosure, four Showtime executives left the firm, and 120 Showtime workers were laid off earlier this week.
EVERYTHING COMES TO AN END
Susan Wojcicki, the current CEO of YouTube, is stepping down from her position. Wojcicki, a Google employee of 25 years, has led YouTube for the last nine years, after transitioning from her previous post as vice president of advertising and sales.
What did she accomplish … During her career as CEO of YouTube, Wojcicki transformed the website into one of the most visited sites on the Internet. It has also become a major element of Google’s advertising business, generating $7.9 billion in the fourth quarter of 2022 and $29.2 billion for the whole year.
Who will fill the shoes? Neal Mohan, who has been YouTube’s chief product officer since 2015, will take over as the company’s next CEO. While Wojcicki will continue to act as a Google adviser.
Youtube is not going anywhere though! YouTube is undergoing a larger change. For younger users, the firm faces stiff competition from TikTok and Instagram. It launched its Shorts product in 2021 to compete in the short-form video sector. In addition, as part of an effort to raise interest in its YouTube TV platform, the business has signed an agreement to stream NFL Sunday Ticket.