Paramount Global’s merger with Skydance Media has turned into a magnet for momentum-driven traders, sending its shares soaring 37% in just six days. The stock, ticker PSKY, has become a favorite among retail traders eager to capitalize on hype surrounding UFC events. According to Don Bilson, head of event-driven research at Gordon Haskett, the deal has created a “playpen for momentum goons.” The catalyst behind the surge is Paramount’s acquisition of exclusive rights to show all UFC events in the US for $7.7 billion over seven years. However, Bilson warns that this makes PSKY vulnerable to a short squeeze, where hedge funds forced to cover their positions could drive up prices further. As a result, the company’s float has shrunk significantly since the deal closed, making it more susceptible to market manipulation. Paramount shares fell 6% on Thursday, but the momentum traders are likely to keep pushing PSKY.
Source: https://www.cnbc.com/2025/08/14/paramount-has-become-a-playpen-for-momentum-goons-riding-ufc-deal-short-squeeze-says-analyst-.html