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Paramount Skydance (PSKY)
NASDAQ:PSKY
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Paramount Skydance (PSKY) AI Stock Analysis

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PSKY

Paramount Skydance

(NASDAQ:PSKY)

Rating:68Neutral
Price Target:
$14.50
▼(-1.63% Downside)
Paramount Global Class B's overall score is driven by strong streaming performance and technical indicators suggesting positive momentum. However, financial challenges and valuation concerns weigh on the score. Continued focus on streaming growth and operational efficiency is crucial for future improvement.
Positive Factors
Cost management
A more aggressive approach to managing cost and investing in technology is expected to improve the performance of assets.
Merger and leadership
The merger with Skydance has brought new leadership and additional capital to the business.
Negative Factors
Advertising revenue decline
Organic declines in linear advertising and distribution revenues are driving a 5-10% decrease.
Leadership instability
Two of the three co-CEOs are expected to leave the company shortly after the Skydance merger closes, indicating potential leadership instability.
Traditional TV business challenges
The headwinds facing the traditional TV business, such as cord-cutting and audience erosion, remain.

Paramount Skydance (PSKY) vs. SPDR S&P 500 ETF (SPY)

Paramount Skydance Business Overview & Revenue Model

Company DescriptionParamount Skydance Corporation operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; and domestic premium and basic cable networks, such as Nickelodeon, MTV, CMT, Comedy Central, BET, Paramount+ with SHOWTIME, Paramount Network, The Smithsonian Channel, BET Media Group, CBS Sports Network, and international extensions of these brands. This segment also provides domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first run syndicated programming; and digital properties consist of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment offers a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consist of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It provides production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.
How the Company Makes MoneyParamount Skydance generates revenue through multiple streams, primarily from box office sales, licensing agreements, and distribution of its film and television content. The company earns significant income from theatrical releases, where ticket sales contribute to its bottom line. Additionally, PSKY capitalizes on home entertainment sales, including DVD and Blu-ray sales, as well as digital downloads and rentals. Another key revenue stream comes from licensing its content to streaming platforms, television networks, and international distributors. Strategic partnerships with platforms like Netflix, Amazon Prime, and others enhance its distribution capabilities, further diversifying revenue. Merchandise sales tied to popular franchises also provide additional income, while promotional partnerships and sponsorships can add to the overall revenue stream.

Paramount Skydance Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong performance in streaming and content leadership, with significant growth in Paramount+ and operational improvements. However, challenges remain with subscriber decline, linear TV declines, and losses in the Filmed Entertainment segment.
Q2-2025 Updates
Positive Updates
Streaming Success
Paramount+ is now a top four global SVOD service, achieving profitability in the U.S. faster than many peers. Revenue from Paramount+ grew 23% year-over-year, with a 22% increase in subscription revenue.
Record-Breaking Franchise Performance
The Mission Impossible franchise achieved the biggest global opening in its history. This has led to a 60% lift in daily active subscriber households for the franchise library on Paramount+.
Financial Growth
Total company revenue grew 1% year-over-year to $6.8 billion. D2C generated an adjusted OIBDA of $157 million, improving 6x compared to the previous year.
Content Leadership
CBS maintained its position as the #1 broadcast network for the 17th consecutive season, with 8 of the top 10 series and 14 of the top 20 series.
Operational Efficiency
Implemented over $800 million in annual run rate non-content expense savings, making the organization leaner and more nimble.
Negative Updates
Subscriber Decline
Paramount+ subscriber count decreased by 1.3 million compared to the previous quarter, primarily due to the expiration of an international distribution agreement.
Linear TV Decline
Linear TV trends continued to pressure advertising and affiliate revenue, with TV media advertising revenue down 4% year-over-year.
DTC Advertising Challenges
DTC advertising revenue declined by 4% due to increased supply in the digital ad marketplace.
Filmed Entertainment Losses
Filmed Entertainment segment reported an adjusted OIBDA loss of $84 million, primarily due to lower profit from licensing.
Company Guidance
During Paramount Global's second quarter 2025 earnings call, guidance was provided on several key financial metrics, reflecting the company's strategic transformation into a streaming-first entity. D2C revenue growth outpaced linear declines, with Paramount+ leading the charge. Total company revenue reached $6.8 billion, marking a 1% year-over-year increase, while adjusted OIBDA improved to $824 million. Paramount+ added 10 million new subscribers, solidifying its position as a top 4 global SVOD service, with revenue surging 33% year-over-year. The service saw watch time per subscriber increase by 14% and churn improve by 100 basis points. In the TV media segment, CBS maintained its dominance as the #1 broadcast network for 17 consecutive seasons, contributing to the 5% growth in total company affiliate and subscription revenue. Filmed Entertainment recorded a 2% revenue increase, driven by blockbuster franchises like Mission Impossible. The company also achieved $800 million in annual run-rate non-content expense savings, underscoring its commitment to improving efficiency and profitability. With the Skydance Transaction set to close on August 7, 2025, this call marked the last for Paramount in its current configuration, as it transitions into its next chapter under new ownership.

Paramount Skydance Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Paramount Skydance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.74
Price Trends
50DMA
13.25
Positive
100DMA
12.47
Positive
200DMA
11.72
Positive
Market Momentum
MACD
0.60
Positive
RSI
55.64
Neutral
STOCH
32.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSKY, the sentiment is Positive. The current price of 14.74 is above the 20-day moving average (MA) of 13.98, above the 50-day MA of 13.25, and above the 200-day MA of 11.72, indicating a bullish trend. The MACD of 0.60 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 32.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSKY.

Paramount Skydance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$534.34B53.5943.55%14.28%46.86%
78
Outperform
$212.64B18.5411.01%0.84%5.00%144.65%
78
Outperform
$25.92B12.4419.96%0.90%16.60%57.39%
71
Outperform
$17.10B58.6354.66%2.20%1.36%-45.79%
68
Neutral
$15.69B-0.11%1.36%-1.75%99.73%
64
Neutral
$28.77B39.472.18%-3.79%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSKY
Paramount Skydance
14.74
4.83
48.74%
DIS
Walt Disney
118.81
31.63
36.28%
NFLX
Netflix
1,257.48
591.71
88.88%
FOXA
Fox
60.81
20.88
52.29%
WMG
Warner Music Group
32.81
5.85
21.70%
WBD
Warner Bros
11.77
4.55
63.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025