PSKY, ORCL, TLRY Stocks Hit 52-Week Lows Today: What's Driving The Selloff?
- Paramount stock fell to a 17-year low of $8.56 after a federal judge temporarily blocked its proposed $110 billion acquisition of Warner Bros. Discovery.
- Oracle shares fell as investors worried about heavy AI infrastructure spending and project delays.
- Tilray Brands shares dropped to a 52-week low of $4.19 as investors awaited its July 28 earnings report.
Paramount Skydance Corp. (PSKY), Oracle Corp. (ORCL) and Tilray Brands (TLRY) each touched new 52-week lows on Monday as investors weighed merger uncertainty, artificial intelligence spending concerns and ongoing profitability challenges across three different sectors.
Paramount Skydance and Oracle stocks dropped 2% and nearly 4%, respectively, while Tilray Brands slipped over 1%.
Federal Judge Puts Paramount-Warner Bros. Deal On Hold
Paramount Skydance stock plunged to nearly a seventeen-year low of $8.56 on Monday after legal uncertainty surrounding its $110 billion proposed acquisition of Warner Bros. Discovery (WBD) intensified.
A federal judge issued a temporary restraining order (TRO) that pauses the proposed combination for at least two weeks while additional legal proceedings are scheduled. The action follows an antitrust challenge backed by a coalition of state attorneys general.
Judge Araceli Martínez-Olguín temporarily paused the merger after finding that the states had raised strong enough concerns that it could reduce competition. According to the court, the combined company would control about 27% of the U.S. wide-release movie market and more than 30% of major theatrical film releases. The judge noted that a market share of 30% or more can indicate a possible antitrust issue.
On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day.
AI Spending Concerns Weigh On Oracle
Oracle stock reached an annual low of $120.03 due to investor concerns over the company's aggressive artificial intelligence infrastructure investments. Oracle’s planned capital expenditures, together with credit-rating pressure and customer concentration risks, have raised questions about the company's balance sheet.
On Monday, CLSA analyst Bhavtosh Vajpayee started coverage of Oracle with a ‘Hold’ rating and a $145 price target. The analyst said enterprise software companies have strong competitive advantages, and believes the sector can recover over time despite its current weakness. However, the firm said software companies need to become more efficient first.
Oracle also faced pressure after New Mexico rejected a permit request for a natural gas pipeline needed to supply power to its Project Jupiter data center. Retail sentiment around the stock remained in ‘extremely bullish’ territory.
Profit Concerns Pressure Tilray
Tilray Brands stock fell to a new 52-week low of $4.19 as investors grew concerned about the company’s profitability ahead of its July 28 earnings report.
Investors are looking for signs that Tilray’s expansion into craft beverages and cannabis can improve its financial performance. Despite the company building new brands and expanding operations, investors remain focused on whether it can reduce losses and generate steady cash flow.
Analysts see second-quarter revenue of $249.6 million with breakeven earnings, according to Fiscal AI data. Retail sentiment around the stock remained in ‘bearish’ territory.
So far this year, PSKY, ORCL and TLRY stocks have crashed between 36% and 53%.