Is Paramount Skydance Worth More?
Full Disclosure: I bought Paramount in the $11 price range.
The reason I bought Paramount was because I knew that David Ellison would be taking over the company. His company Skydance was very successful. He did all the action adventure films like Mission Impossible and The Terminator films as well as Series for Netflix and Apple TV.
What I didn’t expect was for him to get exclusivity for UFC fighting in the United States which has a very loyal fan base. Also, he may be making a move to acquire Warner Bros. Discovery. All of this activity could bump his subscriber base from 77 million to 200 million.
Comparatively, Netflix which is currently selling for around $1200 per share has 300 million subscribers. This makes me think that PSKY is undervalued at this point. It could easily be a $40 stock if not more. So I will be holding on to the stock for now.
Tariffs and the Economy
Tariffs are set to expire on October 14th, 2025. President Trump has already appealed to the Supreme Court to hear his case on why tariffs should remain in place. Those hearings are scheduled for November of 2025.
Therefore this month could look a little volatile. President Trump has already negotiated tariff deals with countries we do business with which means in some areas there might not be a noticeable change in some corporate earnings. However the market may look favorable on the tariff expiration because of expectation of an increase in growth.
It is my opinion that in the month of October keeping Cash on hand is a good idea. As we approach the end of the year, until we get a final answer by the Supreme Court on global tariffs, there is still too much uncertainty on where inflation and global growth is heading.