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Lionsgate Studios Acquires Streaming Platform, Expanding Global Reach

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 2/28/2026, 11:24 am ET 2/28/2026, 11:24 am ET | 5 min 5 min read
Lionsgate Studios Acquires Streaming Platform, Expanding Global Reach Thumbnail

Lionsgate Studios Corp stocks have been trading up by 9.21 percent following a major new content strategy announcement.

Media industry expert:

Analyst sentiment – negative

  1. Market Position & Fundamentals: LION’s market position appears fraught with challenges, as evidenced by its weak profitability ratios, including an EBIT and EBITDA margin of 2.2%, a negative pretax profit margin of -7%, and an overall profit margin of -8.79%. Despite a gross margin of 100%, the company struggles with significant net income losses, reflected in its recent income statement indicating a net income of -$46.2 million for the reported quarter. The company’s valuation metrics are troubling; it exhibits a negative price-to-book ratio of -1.93 and a price-to-cash-flow ratio of -5.7. Additionally, the balance sheet reveals a significant debt load with a long-term debt level of $1.76 billion, negatively impacting financial strength indicators such as interest coverage of merely 0.2 and a current ratio of 0.5. Overall, LION faces ongoing financial pressure with soaring debt levels and sustained operating losses.

  2. Technical Analysis & Trading Strategy: Examining the recent weekly price patterns for LION, the stock has demonstrated volatility within the support range of $8.22 and resistance near $9.22. The dominant trend appears bullish following a week’s resurgence, with an upward closing at $9.01 on 260227, representing a substantial breakout from the $8.37-$8.27 range earlier in the week. A continuation of this uptrend was supported by increased trading volume on 260226 when the high reached $9.1, suggesting robust buying interest. For an actionable trading strategy, consider entering long positions on a pullback to the $8.69-$8.70 area, targeting an exit near the $9.22 resistance level, where profit-taking may be expected.

  3. Catalysts & Outlook: Without recent market-moving catalysts, LION’s outlook is uncertain when benchmarked against traditional media and media industry standards, which generally exhibit more sound financial metrics. LION’s negative equity position and ongoing losses place it at a comparative disadvantage against industry rivals. Should the company fail to implement drastic measures to bolster financial stability, such as debt restructuring or aggressive cost management, the negative trajectory is set to continue. Key support lies at $8.22, with resistance seen at $9.22; breaching these levels could either deepen the downtrend or initiate a corrective upward rally. Overall, the outlook for LION remains bleak amid intensifying financial instability and underperformance.

Candlestick Chart

Weekly Update Feb 23 – Feb 27, 2026: On Saturday, February 28, 2026 Lionsgate Studios Corp stock [NYSE: LION] is trending up by 9.21%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Lionsgate Studios Corp’s financial landscape shows a blend of challenges and opportunities. Recent earnings reports illustrate that while the company’s gross margin remains steady at a robust 100%, several financial metrics signal areas of concern. The pre-tax loss margin stands at -7%, reflecting underlying cost structures that demand scrutiny.

Examining the income statement reveals a noteworthy operating revenue of $724.3M. Yet, the company’s bottom line shows a net loss driven by significant non-operating expenses, including a $65M interest expense. Despite these challenges, Lionsgate’s strategic initiatives, such as the recent acquisition, exhibit promise for future earnings potential by attracting a broader market share.

More Breaking News

In terms of cash flow, the company faced a negative operating cash flow of -$108.9M, with free cash flow at -$111.9M, underscoring the pressures on liquidity. However, with a strategic expansion plan into the streaming domain, Lionsgate could experience an upturn in operating efficiencies and cash flow stabilization in the coming quarters.

Conclusion

Lionsgate Studios Corp stands at a pivotal juncture with the recent acquisition marking a decisive shift in its strategic direction. By expanding its digital reach and diversifying its content offerings, Lionsgate is positioning itself for sustainable growth in an increasingly competitive industry. While immediate financial metrics reveal existing pressures, the forward-looking strategies and anticipated market gains outline a promising outlook.

Traders should monitor the company’s integration efforts and market penetration closely, as these will be critical determinants of Lionsgate’s ability to convert strategic potential into tangible financial success. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” As the company continues on its path toward digital and global expansion, its stock remains a focal point for market watchers seeking insights into the entertainment industry’s evolving dynamics.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”