12-02-2021, 03:18 PM
(12-02-2021, 02:23 PM)DividendGarden Wrote: I'm thinking about going all in on VIAC. (Not really all-in, but a meaningful amount. I'm not crazy) It keeps declining and is trading at about 6 times earnings. Paramount+ is growing like gangbusters and should cause total VIAC earnings to increase in double digits over the next 3-5 years. More and more of it's customer base is switching to this subscription model which has 30% margins versus 10% margins for it's traditional business. Lots to like. What am I missing?You are missing the projections for negative revenue growth the next few years. That is not something to ignore. Ad revenue is moving from network TV to the net at a rapid clip. That's all you need to know IMO. PE means nothing if the E is likely to change. The market knows this. It's not going out of business cheap yet. Not even close. This is like panic buying T at 30. Give it a minute, VIAC isn't running away from you IMO. I'd consider it when it truly bottoms and there is some hope for growth.
What am I missing?