In November, Paramount Global (PARA) bottomed at $10.51, a close low not seen since 2020. Warner Bros Discovery (WBD) traded as low as $8.82 this year. Naturally, markets reacted to the low stock prices for each with rumors of a deal.
On Dec. 20, rumors swirled that WBD and Paramount held talks to discuss a potential merger. However, by 5:18 p.m., WSJ reported that the two firms did not hold formal talks. The denial suggests that you, the retail investor, need to be wary of unknown sources causing the stock price to rise.
Paramount’s owner, Shari Redstone, is not known to strike an easy deal. A merger that combines Paramount, CBS, and other media properties will require months of negotiations.
Conservative investors may look elsewhere for trades. Netflix (NFLX) is on an unstoppable uptrend. At $489.27, it is only 1.38% below its 52-week high. The market accumulated Sony (SONY) until shares peaked at $94. It closed down by $1.54 to $90.08. SONY and NFLX stocks are good trading ideas if their price volatility continues.
Telecom firms are not ideal trades since they are less volatile. Investors seeking value for the long term may consider Comcast (CMCSA), Verizon (VZ), and AT&T (T). T-Mobile (TMUS) trades at the highest P/E at ~ 24 times but has the strongest growth prospects in mobile subscriptions.
