Paramount Skydance Corp. (PSKY), Oracle Corp. (ORCL), and Tilray Brands (TLRY) each touched new 52-week lows on Monday as US stocks faced sector-specific pressures. Paramount stock fell to $8.56 after a federal judge blocked its $110 billion Warner Bros. Discovery acquisition, Oracle dropped to $120.03 on AI spending concerns, and Tilray slipped to $4.19 ahead of earnings. The declines reflect merger uncertainty, infrastructure investment questions, and profitability challenges across three industries.
Paramount Skydance stock dropped 2%, Oracle fell nearly 4%, and Tilray Brands slipped over 1%. So far this year, the three stocks have crashed between 36% and 53%.
Federal Judge Blocks Paramount-Warner Bros. Acquisition
Paramount Skydance stock plunged to a seventeen-year low of $8.56 on Monday after a federal judge issued a temporary restraining order (TRO) that pauses the proposed $110 billion acquisition of Warner Bros. Discovery (WBD) for at least two weeks. 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.
Additional legal proceedings are scheduled. On Stocktwits, retail sentiment around the stock improved to 'extremely bullish' from 'bullish' territory the previous day.
Oracle Faces AI Infrastructure Spending Pressure
Oracle stock reached an annual low of $120.03 on Monday 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.
Tilray Brands Awaits July 28 Earnings Report
Tilray Brands stock fell to a new 52-week low of $4.19 on Monday 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.
FAQ
What caused Paramount Skydance stock to hit a 52-week low on Monday?
Paramount Skydance stock fell to a seventeen-year low of $8.56 after a federal judge issued a temporary restraining order that pauses its proposed $110 billion acquisition of Warner Bros. Discovery for at least two weeks following an antitrust challenge by state attorneys general.
Why did Oracle stock drop to an annual low?
Oracle stock reached an annual low of $120.03 due to investor concerns over the company's aggressive artificial intelligence infrastructure investments, credit-rating pressure, customer concentration risks, and New Mexico's rejection of a permit request for a natural gas pipeline needed for its Project Jupiter data center.
When is Tilray Brands scheduled to report earnings?
Tilray Brands is scheduled to report its earnings on July 28. Analysts forecast second-quarter revenue of $249.6 million with breakeven earnings, according to Fiscal AI data.
