Is Warner Bros. Discovery Stock a Buy?
After years of predictability in the streaming market as Netflix (NASDAQ: NFLX) primarily dominated, the industry has now become a cut-throat market where only the companies with the most attractive content succeed. Warner Bros. Discovery's (NASDAQ: WBD) streaming efforts preceded the company's founding, with WarnerMedia launching HBO Max in May 2020 under AT&T (NYSE: T) and Discovery+ landing on the scene in January 2021.
Warner Media merged with Discovery in April 2022 to form Warner Bros. Discovery. The company's stock has tanked almost 48% since then as merging and restructuring costs have led to significant hits in revenue. However, the company has promising assets that could make its stock a buy for investors willing to hold for the long haul.
Warner Bros. Discovery CEO David Zaslav has spooked investors in 2022, dishing out a seemingly endless slew of budget and content cuts. Slashes have included shutting down several international productions, canceling an all-but-completed DC film after a $90 million investment, multiple lay-offs, and abandoning the streaming service CNN+ after a month of service. As a result, Warner Bros. Discovery's stock is down significantly, dropping 11.7% in August alone.
Source Fool.com
