ViacomCBS Stock At All-Time High After 25% Rally In A Week – What’s Happening?

by Trefis Team
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ViacomCBS
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ViacomCBS stock (NASDAQ: VIAC) has shot up 25% in just the last one week (five trading days) and has totally outshined the S&P 500 which dropped almost 2% during this period. The stock is currently at its all-time high of $84. There are multiple factors responsible for the recent rally, but following are some of the most significant factors which boosted VIAC stock:

  • The launch of its streaming service Paramount+ on 4th March 2021. This includes 30,000 TV episodes, 2,500 movies, 1,000 live sporting events, and live news. Paramount+ will add properties from the combined ViacomCBS network, including Paramount, Nickelodeon, MTV, BET, and Comedy Central. With the traditional businesses (theme parks, studios) severely affected due to the pandemic, the company’s focus on expanding streaming when demand is high is a huge positive for VIAC. Not to forget, along with Paramount+, ViacomCBS also owns Pluto TV streaming service and the Showtime network.
  • VIAC has also made considerable progress in its cable business by renewing contracts with 13 local TV affiliates from Sinclair Broadcasting.
  • The most recent phenomenon is the reported 17 million views that the interview of Prince Harry and Meghan Markle by Oprah Winfrey got (the rights of this interview were sold to CBS). The interview surpassed recent award telecasts of Golden Globes and Emmys.
  • Additionally, improvement in overall market sentiment following the successful vaccine rollout has led to expectations of revival in VIAC’s traditional business segments.

However, is VIAC stock set to continue its upward trajectory or could we expect some correction? We believe that there is a strong chance of a decline in VIAC stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last five years. See our analysis on VIAC Stock Chances Of Rise for more details.

Five Days: VIAC 25%, vs. S&P500 -1.7%; Outperformed market

(Extremely rare event)

  • ViacomCBS stock rose 25% over a five-day trading period ending 3/8/2021, compared to the broader market (S&P500) decline of 1.7%
  • A change of 25% or more over five trading days is an extremely rare event, which has occurred 7 times out of 1256 in the last five years

Ten Days: VIAC 26%, vs. S&P500 -1.1%; Outperformed market

(<1% likelihood event)

  • ViacomCBS stock rose 26% over the last ten trading days (two weeks), compared to broader market (S&P500) decline of 1.1%
  • A change of 26% or more over ten trading days is a <1% likelihood event, which has occurred 2 times out of 1240 in the last five years

Twenty-One Days: VIAC 61%, vs. S&P500 -0.9%; Outperformed market

(0% likelihood event)

  • ViacomCBS stock rose 61% the last 21 trading days (one month), compared to broader market (S&P500) decline of 0.9%
  • A change of 61% or more over 21 trading days is a 0% likelihood event, which has occurred 0 times out of 1198 in the last five years

While ViacomCBS stock may have moved a lot, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how how the stock valuation for Netflix vs Tyler Technologies shows a disconnect with their relative operational growth. You can find many such discontinuous pairs here.

 

See all Trefis Price Estimates and Download Trefis Data here

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