WBD - Warner Bros. Discovery: Fears Are Close To Nearly Peaking Again (Upgrade)
2024-02-19 13:30:00 ET
Summary
- Warner Bros. Discovery stock has fallen close to its November 2023 lows as fears crept in, heading into its fourth-quarter earnings release.
- The market is uncertain about the impact of the joint streamer announcement by Disney, Warner, and Fox Corporation.
- Warner's transition to a more competitive streaming era may lead to a less profitable business, but its valuation has likely reflected significant pessimism.
- I argue why the risk/reward setup is increasingly bullish, even as the ad market in 2024 could be weaker than expected.
I downgraded Warner Bros. Discovery ( WBD ) stock in November 2023, as I argued why a weaker TV advertising market could worsen headwinds as we headed into 2024. WBD has underperformed the S&P 500 ( SPX ) ( SPY ) significantly since my previous article, justifying my caution. However, with WBD falling close to its November 2023 lows, have I reassessed a more constructive opportunity for me to turn more bullish again?...
Warner Bros. Discovery: Fears Are Close To Nearly Peaking Again (Upgrade)