Paramount Skydance Stock: Analysts See Nearly 20% Upside Amid Streaming Subscriber Surge
Wall Street analysts are pointing to a potential rebound for shares of media conglomerate Paramount Skydance Corporation (NASDAQ: PSKY), even as broader market sentiment toward the stock remains guarded. The average analyst price target of $14.08 suggests an approximate 19.8% gain from last Monday's closing price of $11.89.
The mixed outlook comes as the company, formed from the 2025 merger of Paramount Global and Skydance Media, navigates a costly transition to strengthen its streaming foothold. In its third-quarter 2025 earnings, Paramount Skydance reported Paramount+ added 1.4 million net subscribers—the largest quarterly subscription growth among major U.S. platforms since 2023, bringing its total base to 79 million.
"The subscriber numbers are a clear win and validate their direct-to-consumer push," said Barrington analyst Patrick Sholl, who reiterated a Hold rating on January 27. "However, the path to profitability is paved with substantial content spending." Management has outlined plans to inject an incremental $1.5 billion into theatrical releases and streaming content, a move aimed at closing the gap with industry leaders but one that pressures near-term margins.
The company's stock currently carries a 'Moderate Sell' consensus rating, reflecting persistent concerns over execution risks following the complex merger and the capital-intensive nature of the streaming wars. Some funds remain skeptical about the relative opportunity. The Contrarius Global Equity Fund noted in its Q3 2025 letter that while PSKY has potential, it sees greater upside and lower risk in select AI-focused equities.
User Reactions:
"Finally some positive momentum. The sub growth proves the merger wasn't just a headline—it's creating a real competitor to Netflix and Disney. I'm holding long." – Michael R., Santa Monica, CA (Media Industry Consultant)
"A 20% 'potential' upside based on hopes and dreams? They're burning cash to buy subscribers in a saturated market. This feels like rearranging deck chairs on the Titanic. The 'Moderate Sell' rating says it all." – David L., New York, NY (Independent Trader)
"The key will be how effectively they integrate Skydance's production prowess with Paramount's distribution. If they can create a must-have content pipeline, the stock could re-rate significantly. It's a high-risk, high-reward play." – Priya Chen, Austin, TX (Portfolio Manager)
Paramount Skydance, headquartered in Santa Monica, California, operates a vast portfolio including film studios, the Paramount+ and Pluto TV streaming services, and television networks such as CBS, Nickelodeon, and MTV.