WBD - The Right 'Call' On Warner Bros. Discovery
2024-06-27 16:01:14 ET
Summary
- Warner Bros. Discovery, Inc. shares are down over 70% since the April 2022 merger thanks to declining revenues from its network division.
- While it carries a high debt loan, it currently has a favorable interest rate against those obligations, and the stock has seen some recent insider buying.
- A full investment analysis around Warner Bros. Discovery follows in the paragraphs below.
Shares of behemoth media and entertainment concern Warner Bros. Discovery, Inc. ( WBD ) are down over 70% since the April 2022 merger that established it consummated. So far, sagging advertising revenue at its Networks segment has not been offset by improvements at its DTC division as it restructures while navigating a secular content consumption shift. With the average interest rate on its ~$43 billion of debt lower than overnight money yields and trading at under 2.5 times TTM free cash flow, the recent insider buying merited further investigation. A full analysis follows below....
The Right 'Call' On Warner Bros. Discovery