WBD - Warner Bros Discovery: Let Us Talk EBITDA And The Coming Growth
2024-06-10 21:27:40 ET
Summary
- Lack of profitable growth has upset the market despite the progress made with free cash flow and EBITDA.
- Stock price has been affected by the confusion and disappointment.
- Management is frustrated with market impatience.
- Jettisoning money losing divisions and creating the proper supporting structure make progress hard for the market to measure and value.
- Despite the warning from John Malone, a board member, the market has little patience for this part of the long-term solution.
Nothing has caused more issues than the progress or lack thereof of both EBITDA (since the acquisition) and its place in the coming growth for Warner Bros Discovery ( WBD ) since the last articl e. Management has since done a bunch of presentations to try and smooth out the process of going from "cutting like mad" because the acquisition literally had no cash flow (or definitely nothing close to enough) to growing the business. Mr. Market is upset that growth has not occurred from the start while fretting about that lack of growth on the effect of EBITDA and cash flow. Put Mr. Market down as less than pleased with the whole situation. But also realize that if management follows through with the plan, and more goes right than wrong, Mr. Market may well become a fan.
Stock Price History
All of this confusion has, of course affected the stock price.
Warner Bros Discovery Common Stock Price History And Key Valuation Measures (Seeking Alpha Website June 10, 2024) Warner Bros Discovery Common Stock Price History And Key Valuation Measures (Seeking Alpha Website May 31, 2024)
