Paramount Global's (NASDAQ:PARA) stock has been declining for some time now. Recent news about legendary investor Warren Buffett's Berkshire Hathaway dumping Paramount has triggered a further decline in the stock.
The stock has seen a significant decline over the last year, with a 22.8% decrease, and is down 18.73% year-to-date. The stock is down another 2.55% over the last five days.
Chart: Benzinga Pro
Charts indicate Paramount stock's performance has been bearish, with the stock trading below its key moving averages and showing signs of selling pressure. The eight-day, 20-day and 200-day simple moving averages (SMAs) for Paramount stock are all higher than its share price, signaling bearish sentiments. This suggests that PARA is under selling pressure, which could lead to further bearish movement in the future.
The 50-day SMA is below the trading price, indicating a bullish signal. While some short-term indicators suggest a bullish signal, the overall trend indicates the potential for further bearish movement.
Chart: Benzinga Pro
Looking at the oscillators, the Moving Average Convergence Divergence indicator for Paramount stock is 0.15, signaling a bullish sentiment. The Relative Strength Index (RSI) is 49.25, indicating the stock is neither overbought nor oversold. Yet the Bollinger Bands suggest a bear signal, with the stock trading in the lower band.
Buffett announced that his company sold its entire stake in Paramount, as per its Q1 report. The company had previously sold a third of its stock in Paramount during Q4 2023. Buffett stated that he was "100% responsible" for the Paramount decision, both buying in and getting out.
Paramount has previously been in the news because it lost its CEO Bob Bakish. Bakish stepped down, to be replaced by three executives in what the company called the "Office of the CEO."
The company also recently disappointed investors when it ended its exclusive merger talks with Skydance without a deal. Deal talks between Paramount Global and Sony Group Corp (NYSE:SONY) and Apollo Global Management Inc (NYSE:APO) are up in the air.
Also Read: Paramount Acquisition In Doubt As Sony Rethinks $26B Bid
Paramount has reportedly engaged in discussions with Amazon.com Inc (NASDAQ:AMZN) about potentially expanding their media partnership.
With news and technical indicators spelling pessimism toward the stock, it remains to be seen whether Paramount stock can recover from its prolonged abyss.
Photo via Shutterstock.