Please ensure Javascript is enabled for purposes of website accessibility

Why ViacomCBS Shares Jumped 33% in February

By Travis Hoium - Mar 3, 2021 at 2:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Streaming is the name of the game for ViacomCBS.

What happened 

Shares of ViacomCBS (PARA -4.53%) jumped 33% in February, according to data provided by S&P Global Market Intelligence, after the company announced earnings and a new streaming service. 

So what 

Quarterly results showed a 3% increase in revenue to $6.9 billion and net income of $810 million, or $1.31 per share. But the bigger news was on the streaming front.

Couple watching TV on the couch.

Image source: Getty Images.

ViacomCBS announced a streaming service called Paramount+, which will include 30,000 TV episodes, 2,500 movies, 1,000 live sporting events, and live news. Prices will be $4.99 for an ad-supported version and $9.99 for a premium version. Importantly, this will replace CBS All Access, which never really took off as a stand-alone service. 

Now what 

Without streaming, ViacomCBS was in a tough position trying to compete with companies like Netflix and Walt Disney, which have lots of content and tens of millions of streaming subscribers. But this offering is compelling compared to other new streaming services and it could attract a large number of customers who are now cutting the cord from cable. It'll take time to see the financial impact, but going all-in on streaming is being seen as the right move by the market this year. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Paramount Global Stock Quote
Paramount Global
PARA
$31.59 (-4.53%) $-1.50
Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$181.30 (-3.28%) $-6.14
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$101.64 (-3.95%) $-4.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.