Since the last quarter, markets speculated heavily indebted firm Paramount (PARA) would attract buyers. At least one analyst at Redburn Atlantic is giving up on its prospects. The analyst downgraded both Paramount and Warner Bros. Discovery (WBD), citing concerns over linear advertising.
Paramount has lower margins, so a drop in advertising would hurt its EBITDA in the next three years the most.
Look for drive-sharing firm Lyft (LYFT) to shake off a Goldman Sachs downgrade from a “Buy” to a “Hold.” The analyst sees headwinds from higher insurance costs and competition from Uber (UBER) hurting Lyft. The price target is now $12, down from $15.
In the energy sector, Berkshire Hathaway (BRK.A) increased investment in Occidental Petroleum (OXY) to 27%. The $900 million addition adds around 2%. With Berkshire’s warrants included, the holding is at 34%. WTI crude prices are struggling in the low $72s. If it falls below $70 per barrel, OXY stock may fall with it.
Watch for wide swings in ARKK stock. In the crypto market, ARK Invest manager Cathie Wood repeated a belief that Bitcoin could trade to $1.5 million by 203. The bullish call, however, is not helping ARKK exchange-traded fund shares. Investors added only $33.65 million in the last three months, according to etfdb. The fund suffered from a net outflow of around $670 million in the last one-year period.
