PSKY Stock Forecast & Price Target

Paramount Global's diversified operations across TV media, filmed entertainment, and direct-to-consumer platforms position the company for significant growth, particularly within its linear sports segment, which is anticipated to be a robust growth driver. The potential for heightened direct-to-consumer engagement, realized synergies, an improved advertising market, and a favorable content cycle suggest the possibility of exceeding previous performance expectations. Furthermore, the expected rejuvenation of leadership is likely to enhance the content creation and technological solutions, ultimately leading to increased operational efficiencies.

The key reasons for the negative outlook on Paramount Skydance’s stock revolve around a significant 41% decline in subscription, advertising, and licensing revenues, totaling $2.4 billion since 2021. This decline is exacerbated by a secular shift in consumer behavior away from traditional broadcast media, leading to further pressure on advertising revenues and heightening risks associated with driving direct-to-consumer (DTC) growth without adversely impacting linear economics. Additionally, uncertainties related to cyclicality in the advertising market and the hit-driven nature of feature film profits contribute to an unfavorable financial environment for Paramount Skydance.