NEW YORK, Dec. 28, 2025, 2:28 a.m. ET — Market closed
Lionsgate Studios Corp. (NYSE: LION) heads into the final full trading week of 2025 with momentum on its side — and a fresh headline risk investors will be digesting before Monday’s opening bell.
On the most recent trading day (Friday, Dec. 26), LION finished at $9.31, up about 4.7%, after trading roughly between $8.82 and $9.41. Trading volume came in around 5.44 million shares, an attention-grabber for a stock that can still move sharply in thin year-end conditions.
That “thin year-end conditions” part matters. Reuters described Friday’s overall U.S. market as a light-volume, post-Christmas session that ended near unchanged, with major indexes hovering close to record territory — the kind of tape where individual-stock moves can look louder than the broader market’s actual message. [1]
Why LION is in focus heading into Monday
Lionsgate’s stock story right now is basically three threads braided together:
- FAST + ad-tech monetization optimism (strategy catalyst)
- Analyst targets clustering around the current price (valuation “debate zone”)
- A new legal headline (short-term sentiment overhang)
Let’s unpack what investors are likely watching as markets reopen.
1) The strategy narrative: monetizing Lionsgate’s library through FAST advertising
A key driver behind Lionsgate enthusiasm in December has been the market’s growing willingness to value the company not just as a traditional studio, but as a content library with expanding ad-supported distribution.
On Dec. 18, FreeWheel announced an expanded arrangement making it the exclusive ad-serving partner across Lionsgate’s U.S. portfolio of FAST channels, enabling buyers to access Lionsgate’s premium streaming inventory through the FreeWheel SSP via direct or programmatic buying. [2]
Importantly, the announcement wasn’t just corporate boilerplate — it came with named executive commentary. Lionsgate executive Chase Brisbin framed the move as choosing a leading technology partner for its ad-supported FAST business, while FreeWheel executive Greg Bel emphasized streamlining buyer access and improving yield for Lionsgate’s ad inventory. [3]
Market coverage at the time also highlighted that the deal broadens advertiser access across a large channel footprint (dozens of U.S.-based channels), reinforcing the “library monetization” angle that tends to resonate when investors are looking for scalable, higher-margin revenue streams. [4]
2) The headline risk: a lawsuit involving Tyler Perry that also names Lionsgate
The biggest truly “new” Lionsgate-linked headline in the last 24–48 hours is legal.
The Associated Press reported that actor Mario Rodriguez filed a lawsuit accusing filmmaker Tyler Perry of sexual assault, seeking at least $77 million in damages. The lawsuit also names Lionsgate, described by AP as the distributor of “Boo! A Madea Halloween,” alleging the studio ignored Perry’s alleged misconduct. AP noted Lionsgate did not immediately respond to a request for comment. [5]
From a stock-trading perspective, legal headlines like this often behave less like a math problem and more like a sentiment switch: investors may wait to see whether there’s a formal response, whether insurers become relevant, whether the claim broadens, and whether additional reporting changes perceived exposure.
The key point for Monday isn’t predicting an outcome — it’s recognizing that headline velocity can move a stock near highs, especially when liquidity is seasonally thinner.
3) Analyst targets and ratings: what “Wall Street thinks” vs. where the stock already trades
The analyst picture on LION is interesting because it’s not a classic “deep value” spread between price and target. Instead, the published targets sit relatively close to where the stock already is — which can amplify the importance of changes (upgrades, raised targets) rather than the absolute target number.
MarketBeat’s analyst rollups recently showed an average target around $9.14, with targets spanning roughly $8.00 to $11.00. [6]
MarketBeat also summarized several notable calls from late 2025, including:
- Benchmark raising its price target to $11.00 and assigning a Buy rating (reported by MarketBeat as dated Nov. 24, 2025). [7]
- Barrington Research reiterating an Outperform rating with an $8.50 price objective (as cited by MarketBeat). [8]
- Baird moving to a strong-buy stance in its coverage (per MarketBeat’s summary). [9]
Separate analysis from Trefis pointed to a similar theme: the stock’s move in late December was tied to the FAST-ad monetization story plus price-target increases, mentioning Morgan Stanley and Benchmark target hikes in its discussion of the rally. [10]
Takeaway: When a stock is already near the consensus target, the market tends to trade the “next revision” rather than the “current spreadsheet.” Monday’s setup is less about the average target and more about whether new notes appear — and how investors interpret the legal headline alongside the monetization narrative.
The fundamentals backdrop: what Lionsgate last told investors
Beyond the day-to-day trading catalysts, it helps to anchor the story in what the company has actually reported.
In its second quarter fiscal 2026 results (quarter ended Sept. 30, 2025), Lionsgate Studios reported:
- Revenue of $475.1 million
- Net loss from continuing operations attributable to shareholders of $111.9 million (a $0.39 diluted loss per share)
- Adjusted OIBDA of $14.1 million
- Trailing 12-month library revenue up 13% to a record $1.0 billion
- Backlog up 31% sequentially to nearly $1.6 billion [11]
Management commentary also leaned forward: CEO Jon Feltheimer said results were in line with expectations and pointed to meaningful growth ahead over coming quarters and through fiscal 2027 (per the company’s release). [12]
Structurally, Lionsgate is now positioning itself explicitly as a standalone, pure-play content company — emphasizing its film/TV production and distribution, brand portfolio, and 20,000+ title library. [13]
Market context: why the tape matters for LION right now
Because it’s late December, macro conditions and market structure can matter more than usual.
Reuters’ Friday wrap described a session with few catalysts and lighter conviction, with the market sitting near highs. [14] The Associated Press likewise characterized Friday as subdued and below-average in volume. [15]
For a mid-cap media name like Lionsgate, that backdrop can produce two very different outcomes:
- Follow-through breakouts if buyers push a “good news” narrative into a low-liquidity tape, or
- Sharp reversals if profit-taking hits at obvious technical levels.
What investors should know before the next session
With U.S. exchanges closed right now, the next real decision point is Monday, Dec. 29, 2025.
Watch the clock: when liquidity actually returns
The NYSE core session runs 9:30 a.m. to 4:00 p.m. ET. [16]
Extended-hours trading (where available through brokers/venues) is often discussed as 4:00–9:30 a.m. ET pre-market and 4:00–8:00 p.m. ET after-hours. [17]
Why this matters: if a headline breaks (or gets clarified) early Monday, the first price reaction may happen when liquidity is thinner and spreads are wider — which can exaggerate moves.
Headline checklist: the two “fast movers”
- Any Lionsgate response or additional reporting related to the AP lawsuit story. [18]
- Any analyst note traffic that reframes the stock’s upside/downside while it’s still near the upper end of its recent range. [19]
Know the holiday lane lines for the week ahead
Year-end calendars can affect volume and volatility. Investopedia reported that U.S. stock markets are expected to have a full trading day on New Year’s Eve (Dec. 31, 2025), with markets closed on New Year’s Day (Jan. 1, 2026). [20]
Nasdaq’s market holiday schedule also reflects the late-December/holiday closures (including Christmas Day closed and Christmas Eve early close earlier in the week). [21]
The bottom line for LION stock right now
Lionsgate Studios Corp. enters the final days of 2025 with the stock near a fresh high-water mark, supported by a strategy narrative that investors have been rewarding: turning a major content library into a more efficient, ad-supported streaming monetization engine — highlighted by the FreeWheel partnership and executive commentary. [22]
At the same time, the last 24–48 hours brought a new headline that could matter for short-term sentiment: an AP-reported lawsuit naming Lionsgate alongside Tyler Perry. [23]
With markets closed for the weekend, Monday’s open becomes a clean test: does momentum hold when normal liquidity returns, or does headline risk (plus year-end positioning) change the tone? [24]
References
1. www.reuters.com, 2. www.businesswire.com, 3. www.businesswire.com, 4. www.benzinga.com, 5. apnews.com, 6. www.marketbeat.com, 7. www.marketbeat.com, 8. www.marketbeat.com, 9. www.marketbeat.com, 10. www.trefis.com, 11. investors.lionsgate.com, 12. investors.lionsgate.com, 13. investors.lionsgate.com, 14. www.reuters.com, 15. apnews.com, 16. www.nyse.com, 17. www.nasdaq.com, 18. apnews.com, 19. www.marketbeat.com, 20. www.investopedia.com, 21. www.nasdaq.com, 22. www.businesswire.com, 23. apnews.com, 24. www.reuters.com
