Paramount Skydance Cost-Cutting Propels Rally

2 months ago

Carol Masser

"All right, so let's talk about Paramount Skyance. Sticker PSKY. It is rallying about 4 and a half% higher in the aftermarket, but it was up I think as much as 10 9 or 10% here. Yeah, it rallied as much as 10%. It's coming off reporting financial results for the first time since the new investor group took over. It's coming off cost cutting measures. So this is really obviously bad news for workers. 1600 uh jobs are going to be cut as part of this. uh the the number is three billion in cost saving this year. They're increasing that number uh for third quarter. Paramount reported revenue of about 6.7 billion below analyst forecast. But clearly investors are reacting to those cost cutting uh measures. Of course, David Ellison combines Sky Media with Paramount in August. 8 billion merger. Uh really some of the big ones we've seen lately. Uh the company's eliminating jobs, racing to sign deals, right? Uh and some of the cost cutting measures are across Argentina, Chile, uh and other regions."

Paramount Skydance (PSKY) is experiencing a notable aftermarket rally, with gains reaching up to 10%, driven primarily by aggressive cost-cutting initiatives and increased cost-saving targets, despite revenue of approximately $6.7 billion falling short of analyst forecasts. The segment highlights significant layoffs and restructuring as part of a broader strategy following a recent investor takeover and merger activity, suggesting that investors are responding positively to the operational changes.

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