Stock Market Opinions on Paramount Global
Paramount Global Underperforms Despite Strong Year-to-Date Recovery
Paramount Global (PARA), a leading media, streaming, and entertainment company with a market cap of $8.8 billion, has trailed both the Communication Services Select Sector SPDR ETF and the S&P 500 Index over the past year. Despite a year-to-date (YTD) price increase in 2025, the company's shares have yet to fully catch up with the broader market benchmarks.
The entertainment and media sector has faced challenges due to shifting consumer behaviour, competition from big tech players, and evolving advertising markets. Industry consolidation and cost pressures remain factors, as highlighted by a major $8 billion proposed acquisition of Paramount by Skydance and Redbird, which was pending regulatory approval until recently. This has likely contributed to volatility and caution among investors.
The recent approval of the Paramount-Skydance merger by the FCC caused a positive stock reaction, evident in a notable jump in PARA's share price. However, uncertainty about the completed acquisition and its implications may have suppressed stronger gains earlier in the year. Large-scale deals often cause stock lag in the lead-up phase due to regulatory risks and execution concerns.
Paramount’s valuation has remained relatively subdued compared to some peers, as market participants weigh growth prospects against competitive pressures and evolving content consumption trends. Meanwhile, the broader Communication Services sector and S&P 500 have benefited from stronger performance in other tech or digital-focused stocks over the same period.
Despite prior underperformance, PARA’s YTD rise in 2025 reflects growing investor optimism following the merger approval and potential synergies expected from the deal. Seaport Global Securities has set a price target of $11 for Paramount Global, but cautions that shares may give back recent merger-driven gains after the deal with Skydance closes.
Key Points:
- PARA has trailed the Communication Services Select Sector SPDR ETF, which has gained about 27.9% over the past year.
- Over the past year, PARA has gained 16.5%, while the S&P 500 Index has rallied nearly 17.1%.
- On a YTD basis, PARA's double-digit returns outshine the ETF's 10.6% rally over the same time frame.
- The Street-high price target for PARA is $16, suggesting an ambitious upside potential of 22.7%.
- For fiscal 2025, ending in December, analysts expect PARA's EPS to decline 15.6% year over year to $1.30 on a diluted basis.
- The consensus among analysts covering PARA stock is a "Moderate Sell."
- All information and data in the article are solely for informational purposes.
- The current consensus is more bearish than it was three months ago, with fewer "Strong Buy" ratings.
- In 2025, PARA stock is up 24.7%, while the S&P 500 Index has fallen 8.6% on a YTD basis.
- Paramount Global (PARA) is a leading media, streaming, and entertainment company with a market cap of $8.8 billion.
- PARA owns a diverse portfolio of entertainment brands and provides streaming services, including Paramount+, Pluto TV, BET+, and Noggin.
- The company will begin trading under the new ticker PSKY post-merger.
- Kritika Sarmah did not have positions in any of the securities mentioned in the article at the date of publication.
Paramount Global's YTD rise in 2025, despite trailing broader market benchmarks over the past year, could signal an increase in investing interest among shareholders, given the potential synergies from the proposed acquisition. The company's focus on finance and investing through entertainment brands and streaming services like Paramount+, Pluto TV, BET+, and Noggin, may attract more investors even as it navigates the evolving landscape of the entertainment sector.
