PSKY Should I Buy
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Paramount Skydance Corp (PSKY) is not a strong buy for a beginner, long-term investor at this time. The stock is currently in a bearish technical trend, with weak financial performance and limited positive catalysts. While there is some speculative upside due to the ongoing bidding war for Warner Bros. Discovery, the risks outweigh the potential rewards for a beginner investor with a long-term focus.
The stock is in a bearish trend with moving averages indicating downward momentum (SMA_200 > SMA_20 > SMA_5). The RSI is neutral at 25.274, and the MACD histogram is slightly positive at 0.0238 but contracting. The stock is trading near its support level of 10.306, with resistance at 11.154.
Potential upside from Paramount's hostile tender offer for Warner Bros. Discovery at $30 per share, which could lead to strategic growth if successful.
Weak financial performance in Q3 2025, with revenue down -0.43% YoY, net income dropping significantly to -$257M, and gross margin declining to 31.39%. Regulatory scrutiny and uncertainty surrounding the bidding war for Warner Bros. Discovery add further risks. Analysts have mixed views, with Morgan Stanley maintaining an Underweight rating despite raising the price target.
In Q3 2025, the company reported a revenue decline of -0.43% YoY to $6.7B, a significant drop in net income to -$257M (-25800% YoY), and a gross margin decline to 31.39%. EPS remained negative at -0.23.
Morgan Stanley raised its price target from $10 to $12 but maintained an Underweight rating, citing downside risks in standalone free cash flow and concerns over the company's valuation. Analysts are cautious about the potential value unlock from the Warner Bros. Discovery acquisition.
