PSKY Stock Forecast & Price Target

Paramount Global operates across three primary segments: TV media, filmed entertainment, and direct-to-consumer, with a diversified portfolio that includes popular networks and streaming services such as Paramount+ and Pluto TV. The company's growth potential is underpinned by a robust linear sports business, anticipated efficiencies from restructuring, and significant upside risks, including improved direct-to-consumer metrics and a favorable advertising environment. Enhanced leadership is expected to invigorate content production, streamline technology, and realize cost efficiencies, further reinforcing the company's positive outlook.

Paramount Skydance's stock outlook is negatively influenced by a 41% decline in revenue (approximately $2.4 billion) since 2021, driven by pressures on subscription, advertising, and licensing revenues within its TV media segment. The ongoing shift in consumer behavior away from traditional broadcast television is contributing to a decrease in advertising revenue, further exacerbated by risks such as cyclical volatility in the advertising market and lower-than-expected affiliate contract rates. Additionally, the company's reliance on hit-driven features and the financial pressures tied to its direct-to-consumer growth strategy suggest incremental risks that may be underestimated by management, undermining overall consolidated performance.