Paramount and Skydance merged last week to form a new company officially called Paramount, a Skydance Corporation. Paramount Skydance announced a seven-year agreement for media rights to the Ultimate Fighting Championship on Monday, and analysts think more deals could be coming.

The newly formed Paramount Skydance's stock just earned its meme stock fame and surged. Should investors dive in or approach cautiously?

After shares of the new Paramount Skydance shot up double digits, Wall Street watchers compared it to a meme stock.