The firm's earnings and revenue topped estimates
The shares of Paramount Global (NASDAQ:PARA) are down 3.1% at $24.26 ahead of the bell, following the media company's second-quarter earnings report. PARA posted earnings of 64 cents per share, which is slightly higher than the 61 cents per share anticipated by analysts. The company also reported a 19% rise in revenue to a better-than-expected $7.78 billion, thanks to the popularity of "Top Gun: Maverick," which helped offset slowing streaming subscriber growth. "Top Gun" saw $1 billion in box office sales to become the top domestic grossing film of all time.
The drop has PARA headed back toward its Aug. 1, two-year low of $23.15. The shares tried to rally off this bottom in the following sessions, but ran out of steam at the 40-day moving average -- a trendline the equity hasn't topped since late May. Year-to-date, Paramount stock is down more than 17%.
Analysts have yet to comment on Paramount's mixed report, though the security was the subject of a bear note that sent it to then two-year lows late last month. Sentiment surrounding the stock is generally bearish, though there have been some holdouts. Of the 17 in coverage, six say "buy" or better, while 11 say "hold" or worse.
Short interest was inching higher ahead of the event, up 0.4% in the last reporting period, and these bears are firmly in control. The 53.12 million shares sold short make up 9.2% of the stock's available float, or nearly six days' worth of pent-up buying power.