Studio stocks are showing signs of recovery

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Last Post by ItsJustMe 2 years ago

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obryantcj

Topic starter

Jun 14, 2023 1:13 pm

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After the huge drop most of the studios suffered after releasing their Q2 results – several are crawling their way back up in value.

WBD closed yesterday at $13.79 after falling below $11.20 at the end of last month.

PARA that fell under $14 at the end of May is back up to $16.57.

DIS dropped under $88 a share last month and closed yesterday at $93.85.

Meanwhile all of these studios have decent recent layoffs, some pretty major in fact. Paramount reduced staffing by 25% – 1/4th of its workforce and are in the process of selling Simon & Schuster by year end.

Best,

Chris O’Bryant
@obryantcj

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PARA WBD DIS WALL STREET

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ItsJustMe

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Jun 15, 2023 3:57 am

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obryantcj

Wow. I do know a lot of the layoffs also have to do with them pairing down all the streaming as well.

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obryantcj

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Jun 15, 2023 12:01 pm

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Streaming has cost the studios a fortune – trying to catch up to the Netflix mod.

They’ve spent millions to produce content to attract subscribers.

for a long time Wall Street was evaluating a company’s worth by their subscriber numbers —

However, when you multiply the number of subscribers against the money they’ve been spending + the cost of supporting the infrastructure those valuations don’t add up.

Even Disney+ they have a huge subscriber base but take a look at the per episode cost of the very high end shows they’re producing.

When the studios are saying they aren’t making money – they’re not actually lying. They’ve just completely mismanaged their financials through poor decisions and spending over the last ten plus years.

Best,

Chris O’Bryant
@obryantcj