Following an over 8% rise on Tuesday, the stock rallied sharply on Wednesday before ending with a gain of 36.74% at $15 on significantly higher volume.
Paramount Skydance Corp. (PSKY) shares slipped in Thursday’s early premarket trading following their substantial advance in the previous session.
The merger between Paramount and Skydance was finalized last week, and the company’s shares began trading under the new name on Thursday. After showing lackluster sentiment in the first few sessions, the stock began to gain momentum on Tuesday.
Following an over 8% rise on Tuesday, the stock rallied sharply on Wednesday before ending with a gain of 36.74% at $15 on significantly higher volume. According to Barron’s, that marked the best-ever two-day stretch for the stock since its initial public offering in 1990.
The report also raised the specter of a “meme stock” rally and a potential short squeeze as about 70% of the equity in Paramount Skydance is owned by Skydance. As of July 31, about 89 million Paramount shares were sold short.
“Paramount, (PSKY), is a meme stock!!!!!!!!!!!!!! Small float… shocking,” wrote CNBC “Mad Money” host Jim Cramer on Wednesday.
The new management also announced plans to develop its entertainment brands, including Nickelodeon, MTV, and BET, and significantly increase feature film production. While speaking to reporters in Los Angeles, CEO David Ellison announced that the Paramount+ streaming service will feature more content, Bloomberg reported.
He also targets releasing about 20 movies a year, with a third sequel of the “Top Gun” series being the priority. Ellison, however, ruled out renewing a multiyear live-action film deal with Apple Inc. announced in 2022.
On Stocktwits, retail sentiment toward Paramount Skydance turned ‘extremely bullish’ (75/100) from ‘bullish’ a day ago, while the message volume also turned ‘extremely high.’
In the early premarket session on Thursday, Paramount Skydance stock slipped 2.27% to $14.66, with the pullback potentially due to profit-taking.
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