Paramount Stock Plummets After Analyst Downgrades Due to Lack of Asset Sales

Paramount Global shares dropped nearly 9% after media analyst Jessica Reif Ehrlich downgraded the stock to "underperform" in a double downgrade, citing the lack of significant asset sales on the horizon. Despite an upbeat earnings report and narrowing streaming losses, Paramount remains challenged by shifts in advertising and linear TV viewing. Ehrlich's revised price target for Paramount shares is $9, reflecting concerns about the company's elevated leverage levels and negative free cash flow. The question of whether Paramount can continue as it is structured or if a merger is inevitable remains unanswered.