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Paramount (PSKY) Stock Trades Up, Here Is Why

PSKY Cover Image

What Happened?

Shares of multinational media and entertainment corporation Paramount (NASDAQ: PARA) jumped 4.1% in the morning session after the company bolstered its leadership team with key tech executives, signaling a strategic push into artificial intelligence (AI) and building investor confidence after its recent merger. 

Paramount Skydance named ScaleAI's finance chief, Dennis Cinelli, to its board and appointed former Meta Vice President Dane Glasgow as its new Chief Product Officer. These moves highlighted CEO David Ellison's focus on harnessing AI to future-proof the entertainment giant. Investor optimism was also fueled by other positive developments, including the renewal of the hit show 'Tulsa King' on Paramount+. The stock's significant jump also reflected general excitement surrounding the recent merger, with some analysts pointing to the potential for a short squeeze due to low public share ownership. A new UFC media rights deal was also viewed as a factor that could enhance future revenue and growth.

After the initial pop the shares cooled down to $17.81, up 1.7% from previous close.

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What Is The Market Telling Us

Paramount’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 23 hours ago when the stock dropped 3.6% on the news that a prominent U.S. senator called for the company's potential merger with Warner Bros. Discovery to be blocked, citing antitrust concerns. 

Senator Elizabeth Warren described the potential deal as a "dangerous concentration of power" that should be stopped, causing shares of both companies to decline. The pressure emerged as Paramount navigated significant changes following its recent merger with Skydance. The company was reportedly bracing for thousands of layoffs to achieve $2 billion in cost savings.

Paramount is up 68.3% since the beginning of the year, and at $17.81 per share, it is trading close to its 52-week high of $18.79 from September 2025. Investors who bought $1,000 worth of Paramount’s shares 5 years ago would now be looking at an investment worth $588.57.

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