Paramount Skydance Stock Surges After Merger

Shares of the newly merged Paramount and Skydance surged this week amid excitement over the creation of the new media giant.

The sharp rise has prompted speculation that the stock could be behaving like a GameStop-style meme trade. (Image: Skydance Facebook)

Paramount Skydance stock jumped 40% to $15.32, following an 8.4% gain—the best two-day run on record for Paramount, dating back to its 1990 IPO, according to Dow Jones Market Data. Nate Wolf and Elsa Ohlen reported the story for Barron’s Daily.

The sharp rise has prompted speculation that the stock could be behaving like a GameStop-style meme trade.

A short squeeze may have contributed, as heavily shorted shares rising quickly can force short sellers to buy back stock, further driving demand.

Fundamentals may also be playing a role. Paramount Skydance recently signed a multibillion-dollar, seven-year deal with TKO Group Holdings, granting it exclusive U.S. media rights to all Ultimate Fighting Championship (UFC) events.

Still, analysts remain cautious. Guggenheim initiated coverage with a Buy rating and a $13 price target, according to FactSet. But that’s one of only a few bullish calls; among 27 analysts covering the company, the average target price is $11.25.