ViacomCBS Stock Slips Despite Revenue Beat

Options volume is running at double what's typically seen at this point

Deputy Editor
Nov 4, 2021 at 10:32 AM
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ViacomCBS Inc (NASDAQ:VIACis down 1.9% to trade at $36.85 at last check, following the media and entertainment concern's third-quarter report. The company added 4.3 million global streaming subscribers, leading to better-than-anticipated revenue, while profits of 76 cents per share matched analysts' expectations. 

Despite moving lower today, ViacomCBS stock is still on track for its first weekly gain in six weeks. Reversing course from its earlier gains, the security was rejected by the $38 level, which has served as a ceiling for breakouts during the past couple weeks. If these losses hold, the equity will have dipped back below its year-to-date breakeven

At least one analyst is responding to the earnings event. Specifically, CFRA downgraded the security to "hold" from "buy," and cut its price target to $40. Coming into today, seven of the 14 brokerage firms in coverage carried a "buy" or better rating on VIAC, while the other half said "hold." 

Options traders are targeting VIAC at double their usual volume, with 29,000 calls and 13,000 puts across the tape so far. The weekly 11/5 36-strike put is the most popular, followed by the 37.50-strike call in the same series, both of which expire at the close tomorrow.

 

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