WBD - Warner Bros. Discovery: Potential Bottom Formed For Now (Rating Upgrade)
2024-02-20 16:22:00 ET
Summary
- Warner Bros. Discovery, Inc. is set to report Q4 '23 results with consensus estimates of a decline in revenue and negative EPS.
- The company is facing tough quarters due to strikes in 2023 and is not expected to be profitable for the year.
- Warner Bros. has improved cash flow but lacks growth initiatives to generate revenue growth over time.
- The stock has bottomed out around $9.50 and FCF of $5+ billion should provide stability.
Warner Bros. Discovery, Inc. ( WBD ) has completely missed out on the recent stock market rally. The media space has faced a very competitive last couple of years, and the strikes in 2023 will have lingering impacts, but the company is now solidly cash flow positive. My investment thesis is now Neutral on the stock heading into Q4 '23 results with the stock setting up a double bottom at right below $9.50....
Warner Bros. Discovery: Potential Bottom Formed For Now (Rating Upgrade)