Jacek_Sopotnicki Warner Brothers Discovery (NASDAQ:WBD) released first quarter earnings last week. The media giant has been scrutinized for earnings performance and high leverage since its merger. Back in February, I took a bullish stand on Warner Brothers Discovery through the sale of cash secured puts. While the first quarter earnings report disappointed by missing both…
Roger Utting Photography/iStock Editorial via Getty Images Mr. Market Is Now Looking Past A Tough Q1 Warner Bros. Discovery (NASDAQ:WBD) had another tough quarter in Q1 2024. Looking at the headline numbers, the company had a revenue decline of 7% compared to Q1 2023, similar to the year-on-year decline they reported last quarter. Adjusted EBITDA…
Jacek_Sopotnicki Investment Thesis After falling 65% since April 2022, Warner Bros. Discovery’s (NASDAQ:WBD) valuation is at an all-time low. A forward FCF yield of ~25% and the huge potential of its streaming service Max provide us with a compelling entry point. Short introduction In April 2022 Discovery merged with WarnerMedia to create a new media…
Jacek_Sopotnicki Investment Thesis: Warner Bros. Discovery (WBD) is a media and entertainment business that operates primarily in the segments of Studios, Networks, and DTC. Some notable brands they own include DC, Game of Thrones, Harry Potter, and many more household names while some of the primary platforms they operate through are TNT Sports, Max, and…
Editor’s note: Seeking Alpha is proud to welcome Kenio Fontes as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Jacek_Sopotnicki In recent years, Warner Bros. (NASDAQ:WBD) has faced…
The debt elephant has left the room. vicnt/iStock via Getty Images Warner Bros. Discovery Q4/23 earnings review Warner Bros. Discovery (NASDAQ:WBD) released its full-year 2023 earnings report on 2/23/24, and, for what it’s worth, missed estimates both on revenues (1%) and on earnings (instead of tiny positive EPS, the actual result was -$0.16 per share)….
BalkansCat/iStock Editorial via Getty Images The big news for Warner Bros. Discovery (NASDAQ:WBD) is that management found a cushion that, so far, the market could care less about. But that rather significant cash cushion (that I discussed when management found it) has made the transition of these assets to a formidable competitor far easier. It…
SOPA Images/LightRocket via Getty Images I downgraded Warner Bros. Discovery (NASDAQ: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…
Dimitrios Kambouris/Getty Images Entertainment Warner Bros. Discovery, Inc. (NASDAQ:WBD) represents a unique opportunity in the entertainment and media industry. The company, which is the result of a merger between WarnerMedia and Discovery, Inc., boasts some of the most in-demand IP in the space. While WBD has yet to take full advantage of its vast IP…
Pla2na/iStock via Getty Images Talos Energy Inc. (NYSE:TALO) may see production increases in 2024 from the Sunspear discovery as well as Venice and Lime Rock. In my view, thanks to the CO2 storage market growing at close to 21% CAGR and TALOS’s storage portfolio, the company may receive significant demand for the stock. There are…
The media shake-up has intensified amid changing advertising trends fueled by the rise of X platform backed by tech billionaire Elon Musk. Warner Bros Discovery Inc (NASDAQ: WBD) and its media rival company Paramount Global (NASDAQ: PARA) are reportedly in early merger talks, according to people familiar with the matter. The two media houses intend…
PeopleImages We previously covered Warner Bros. Discovery (NASDAQ:WBD) in August 2023, discussing the potential improvement in its top and bottom lines, thanks to the massive success enjoyed by the Barbie movie. Combined with its breakeven trend for the D2C segment, returning advertising dollars, and inherent undervaluation, we had rated the stock as a Buy then….
Jacek_Sopotnicki Warner Bros. Discovery (NASDAQ:WBD) is the curious case of the company that has no earnings but a positive cash flow. Investors are used to the contrary: companies that showcase stellar earnings but fail to generate any meaningful cash flow to reinvest, pay dividends or buy back stock. Earnings higher than Cash Flow is the…
martin-dm Dear Baron Discovery Fund Shareholder: Performance Baron Discovery Fund’s 10-Year Anniversary On September 30, 2023, Baron Discovery Fund® (the Fund) reached its 10-year anniversary. As long-term investors, we are most focused on our alpha creation over time. Using that criteria, investors who bought our Fund on day one would be up, on a cumulative…
Jamie McCarthy/Getty Images Entertainment Above: Succession was emblematic of the quality level of HBO that sustains subscription growth into the out years. “If you are going through hell, keep going…” Winston Churchill The media/entertainment sector has been anything but pretty, as the streaming wars continue to send torrents of losses destroying what pretenses are left…
Wirestock/iStock Editorial via Getty Images I recently published a bearish article on Warner Bros. Discovery (NASDAQ:WBD), “WBD.” However, after additional analysis, I admit I was wrong. My conclusion was hasty. Instead of focusing on WBD’s free cash flow, I focused more on its higher-than-expected losses. However, much of the new company’s losses are due to…
Mike Coppola Investment Thesis Warner Bros. Discovery, Inc. ((NASDAQ:WBD) or the “Company”) has received much attention from financial and media analysts as it has gone through its in the spotlight transformation since the closing of its merger on April 8, 2022. Despite the general macroeconomic and media market/industry headwinds experienced, WBD has made significant progress…
Ethan Miller/Getty Images Entertainment Above: CEO Zaslav, an innovator and a fearless cost cutter might just be what WBD has that all entries in the sector need. On metrics alone, all streamers look alike for better or worse: Too much debt, no solutions that appear to show the pathway ahead to profits. WBD looks to…
Warner Bros. Discovery, Inc. (NASDAQ:WBD) Bank of America Securities 2023 Media, Communications & Entertainment Conference September 14, 2023 8:50 AM ET Company Participants Gunnar Wiedenfels – Chief Financial Officer Conference Call Participants Jessica Reif Ehrlich – Bank of America Securities Jessica Reif Ehrlich Welcome to day two. We are thrilled to have Gunnar Wiedenfels here…
Jon Kopaloff I upgraded Warner Bros. Discovery, Inc., or Warner (NASDAQ:WBD) stock in late May, urging investors that it was time to “catch the falling knife.” That thesis played out remarkably well, as WBD bottomed out in early June 2023 before staging a spectacular reversal through its early August highs, up nearly 36% from its…
Tim P. Whitby/Getty Images Entertainment Warner Bros. Discovery, Inc. (NASDAQ:WBD) has had continued weakness since its IPO, with its market cap dropping to below $30 billion. At the same time, the company was caught up in the expensive streaming wars, weakening its position. Despite this, the company has the financial strength to work towards strong…
jewhyte/iStock Editorial via Getty Images Warner Bros. Discovery (NASDAQ:WBD) is starting to differentiate itself in an increasingly crowded entertainment space. The company has experienced major successes just as competitors like Disney (DIS) have begun to lose steam. In fact, Warner Bros. Discovery recent movie, streaming, and video game hits The Last of Us, Hogwarts Legacy…
SEC’s requests have not been limited to the discovery of Binance’s custody, security and availability of customer assets alone. Binance has filed for the court to grant it a protective order against the United States Securities and Exchange Commission. This follows after the financial regulator has made several attempts to lay its hands on all…
Phiromya Intawongpan Dear Baron Discovery Fund Shareholder: Performance Baron Discovery Fund Retail Shares1,2 Baron Discovery Fund Institutional Shares1,2 Russell 2000 Growth Index1 S&P 500 Index1 Three Months3 3.47% 3.58% 7.05% 8.74% Six Months3 15.02% 15.19% 13.55% 16.89% One Year 15.17% 15.44% 18.53% 19.59% Three Years 5.07% 5.35% 6.10% 14.60% Five Years 7.30% 7.58% 4.22% 12.31%…