Wow, it seems like Paramount Skydance shares have become a hotspot for those retail traders chasing trends, all thanks to the buzz around UFC fights. Don Bilson from Gordon Haskett mentioned how these shares, with the ticker PSKY, kicked off their trading last Friday after Paramount Global wrapped up its merger with Skydance Media. Just six days in, and they shot up a whopping 37%, snatching the spotlight in the S&P 500 on that day.
Bilson playfully congratulated folks like Shari Redstone, David Ellison, and the old Paramount board for leaving a bit of Paramount public, which has now become a playground for these momentum traders. He noted how quickly these traders jumped in after the announcement that Paramount snagged the exclusive U.S. rights for UFC events from TKO Group in a massive deal worth $7.7 billion over seven years. UFC’s Dana White even joked about hosting a cage fight on the White House lawn, which added fuel to the fire. As Bilson put it, the situation got interesting when these “goons” went all in, turning PSKY into a meme stock overnight.
According to FactSet, 15% of PSKY’s float is currently sold short. Bilson pointed out that the company’s float has shrunk since the deal, making it easier for traders to stir things up. With fewer shares available, any surge can force those who bet against the stock to scramble and buy back shares to cover themselves. By Thursday, though, Paramount started taking a breather, dipping 6%.
