Viacom stock rises 6% as subscriptions numbers soar

ViacomCBS (VIAC.US) stock surges more than 6.0% after the company posted solid quarterly results and announced it signed up the highest number of new streaming subscribers in the second quarter. Mass media company earned  97 cents per share, slightly above analysts’ expectations of 96 cents per share. Revenue jumped to $6.564 billion from $6.075 billion, also beating market estimates of $6.488 billion. Investors welcomed the news that the company's Paramount+ service added more than 6 million subscribers for a second straight quarter and now has a customer base of more than 42 million. Also Viacom signed a multi-year deal with Comcast Corp (CMCSA.US)'s Sky to launch the Paramount+ streaming service in Europe.

ViacomCBS (VIAC.US) stock has been moving within the descending channel recently. Today price is testing the upper limit of the formation which coincides with 200 SMA (red line) and upper limit of the 1:1 structure. If current sentiment prevails then upward move may be extended to the resistance at $43.90. On the other hand, if sellers manage to regain control then another downward impulse towards April's lows at $37.22 may be launched. Source: xStation5