Merger and acquisition disappointments are not the reason why media stocks are on the decline. Firms like Comcast (CMCSA), Warner Bros Discovery (WBD), and Paramount (PARA) have too much debt, while advertising revenue weakens.
Paramount is an especially volatile stock. After spiking close to $14, the stock fell for five straight sessions. PARA closed at $10.50 after four Paramount board members said they would step down. They are likely against the deal to merge with Skydance Media. Markets believe that Paramount is more likely to reject Apollo Group Management’s (APO) deal to buy the firm for $26 billion.
Paying a dividend that yields 6.27%, Pfizer (PFE) stock is still slipping. It has a promising RSV shot for high-risk adults under age 60.
Intel (INTC), which announced the Gaudi 3 AI accelerator, needs to win back its shareholder’s confidence. The stock risks falling to around $32.
After posting strong hybrid vehicle sales, Ford Motor (F) stock rallied. It lost momentum after announcing a recall for around 43,000 SUVs. The vehicles risk gas leaks that could cause a fire. Ford needs to address quality issues before investors can confidently buy the stock.
Airliner American Airlines (AAL) posted record earnings but the rally lost momentum. Airfares fell in March. People may cut travel due to inflationary pressures.
