Paramount Skydance Corporation (PSKY) Rose Following the Conclusion of the Merger

Ariel Investments, an investment management company, released its “Ariel Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S equities rallied in the third quarter, driven by the Federal Reserve’s first rate cut of the year, strong corporate earnings, and broadening market participation. The continued enthusiasm for AI led to outsized gains in technology, while small caps outperformed as capital shifted into undervalued segments of the market. Against this backdrop, Ariel Fund returned +12.39% in the quarter, surpassing the Russell 2500 Value Index’s +8.17% return and lagging behind the Russell 2000 Value Index’s +12.60% gain. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Ariel Fund highlighted stocks such as Paramount Skydance Corporation (NASDAQ:PSKY). Paramount Skydance Corporation (NASDAQ:PSKY) is a global media and entertainment company. The one-month return of Paramount Skydance Corporation (NASDAQ:PSKY) was -13.00%, and its shares gained 59.90% of their value over the last 52 weeks. On October 23, 2025, Paramount Skydance Corporation (NASDAQ:PSKY) stock closed at $16.47 per share, with a market capitalization of $18.054 billion.

Ariel Fund stated the following regarding Paramount Skydance Corporation (NASDAQ:PSKY) in its third quarter 2025 investor letter:

"Additionally, shares of Paramount Skydance Corporation (NASDAQ:PSKY) rose following the completion of its merger with Skydance Media. While linear TV viewership and advertising remain headwinds, PSKY is investing for growth through intellectual property, creators, and sports. Recent strategic moves include exclusive streaming rights for Ultimate Fighting Champion (UFC) and South Park, and a content partnership with the Duffer Brothers post-Netflix. Media reports also suggest PSKY is preparing a bid for Warner Bros. Discovery. With new leadership in place, the company is expected to reinvigorate its content engine, enhance technology capabilities, and drive operational efficiencies."

Paramount Skydance Corporation (NASDAQ:PSKY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Paramount Skydance Corporation (NASDAQ:PSKY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Paramount Skydance Corporation (NASDAQ:PSKY) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.