Paramount Skydance Stock Plummets Amid Analyst Downgrades and Credit Concerns
Paramount Skydance (PSKY) shares tumbled 7.7% to $10.37, marking a six-session losing streak. The decline follows BofA's price target cut from $13 to $11, maintaining its 'Underperform' rating. Analyst Jessica Reif Ehrlich cited long-term uncertainty despite the Warner Bros. Discovery acquisition potential.
Credit agencies amplified concerns—Fitch downgraded PSKY to junk status while S&P placed it on negative watch. The stock has now erased all gains from its February 27 surge when the Warner deal was announced. Year-to-date, PSKY sits 21.8% lower and 47.8% below its 52-week high.
The Warner Bros. Discovery acquisition comes barely a year after Paramount's merger with Skydance Media, raising integration challenges. Market skepticism grows as the entertainment conglomerate navigates layered restructuring during industry-wide streaming pressures.
