WBD-Q Discovery Inc.. Any idea where the price is going?

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WBD has had a significant ride downwards since shortly after launch. Have you had a chance to review and develop and opinion about investing in it? thanks for your comments etc.. Cheers, Doug

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Asked on May 7, 2022 11:42 am
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It's a really difficult environment for streamers right now. And I think WBD is in a position where it is going to have to establish itself in the space which often requires a significant amount of capital. Content spend is a big issue with some of these companies, and honestly Discovery wasn't all that popular anyways. WBD plans for over $20B in content spend in 2022. This wouldn't be much of an issue but the company took on some heavy debt on the balance sheet in the merger.

Overall I think it's undervalued simply because of the hammering streaming companies are taking. But, it's still not likely a company I'd be looking to buy right now until we at least see a bottom when it comes to negative sentiment towards streamers.

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Posted by Dan Kent
Answered on May 9, 2022 9:12 pm