CNBC’s Mad Money host Jim Cramer called Paramount Skydance Corp (NASDAQ: PSKY) a “meme stock” on Wednesday on X. The tweet came a few minutes after the opening bell, indicating that PSKY could tumble in value. To everyone’s surprise, but also not to everyone’s surprise, Paramount Skydance surged 36% in value the same day. Crypto commentators called it the ‘Inverse Cramer’ effect, highlighting PSKY’s double-digit rise.
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Paramount Skydance stock took the top spot in the US markets after rising 36% post Jim Cramer’s tweet. PSKY opened Wednesday’s trading bell at $11.19 and closed the day’s trade at $15 by surging 4.03 points. It remained stagnant between $10 and $11 for over a week, but dramatically skyrocketed in value. Investors who brought $1,000 worth of PSKY saw their portfolio grow to $1,360 the same day.
Why Did Paramount Skydance Stock Rise 36% After Jim Cramer’s Tweet?
In reality, Jim Cramer’s calling Paramount Skydance a “meme stock” did not make it surge in value. PSKY spiked because it completed a high-profile merger with Skydance Media, adding a vast library of content and a global distribution network. The merger was announced on August 13, taking the new ticker PSKY in the NASDAQ index. Jim Cramer might have underestimated Paramount Skydance stock when he made the tweet.
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In addition, Paramount announced $7.7 billion media rights partnership with TKO Group Holdings with a 7-year agreement. The firm will become the exclusive distributor of UFC events in the US from 2026. The deal allows Paramount to stream all UFC fights and events across the US.
Should You Buy the Equity Now?
It is too early to provide a price prediction for PSKY as the joint-venture ticker went live yesterday. Leading analytical firms have yet to analyze the price prospects and the impact it has on the markets. The merger will undoubtedly boost Paramount Skydance stock’s prospects, and those who believe in its long-term prospects can take an entry position.