ViacomCBS Inc, A Nostalgic Powerhouse


When you ask any 90s kid which parts of their childhood they are most fond of, you may be surprised at one common factor they all share: watching cartoons on the weekends. ViacomCBS Inc (NASDAQ:VIAC), which owns Nickelodeon, a popular pay television channel which broadcasts many nostalgic children’s cartoons, is a high dividend yielding, low priced, powerhouse. ViacomCBS has the unique ability to move an audience with nostalgia. The company also owns the rights to multiple sports leagues and popular franchises such as Star Trek, Mission Impossible and Shrek, as well as individual beloved films such as Forrest Gump. It is undeniable that ViacomCBS has a hold on many beloved names, however, how does this make it a great long-term stock idea?


Untapped Assets and the Shift to Streaming

Before we jump into a more technical look at what makes this stock a valuable addition to any long-term portfolio, we need to explore a couple of concepts. To start off with, nostalgia has been proven time and time again to drive sales and gain eyeballs. For example, when Hostess, the company that produced the popular snack “Twinkies”, filed for bankruptcy, Americans were devastated. A name that had been with them since childhood, was now being taken off of grocery store shelves. However, these nostalgic feelings for the brand, is what led Apollo Global Management to purchase Twinkies and several other of Hostess’ snacking trademarks for $410 million.

In the same right, ViacomCBS Inc has enormous potential to reboot or further many popular franchises, a huge asset in the long-term and a catalyst for stock market growth. This is especially true as more and more streaming services are taking back the rights to their programming from relatively newer companies such as Netflix, which lease the rights to stream programming. ViacomCBS has already begun the shift to streaming, with their own service CBS All Access.

At the moment this only contains a handful of movies and TV shows that the brand owns, however, they are planning on adding a full sleuth from their Paramount Pictures and Nickelodeon brands. This will certainly greatly increase the popularity of their streaming service. When Disney  (DIS) released their flagship streaming platform, Disney Plus, their price per share shot up 7% within a day. Therefore, there is a good chance that ViacomCBS Inc adding additional programming to CBS All Access, will have at least some positive effect on the price per share. It may even be a catalyst for additional long-term gains.

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(For disclosure purposes, I do not own any stake in ViacomCBS, Comcast or Disney)

Disclaimer: This article is not an investment recommendation, more

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