A Bull Market Is Coming: 3 Reasons to Buy Warner Bros. Discovery Stock
As an entertainment company, Warner Bros. Discovery (NASDAQ: WBD) competes with the likes of Walt Disney, Netflix, and Paramount Global. But Warner Bros. Discovery stock is currently trading at a valuation well below those rivals, which may lead some investors to wonder whether it's a smart buy now -- particularly as some analysts anticipate a bull market in 2023. Let's explore the state of the company and just why it may be a good bet.
Despite the global popularity of subscription video on demand (SVOD), many players in that industry have struggled to make their services profitable. According to an IndieWire report, of the major streaming services, only Netflix and Walt Disney-controlled Hulu are in the black. However, Warner Bros. Discovery is showing signs it could soon join that club.
In the first quarter, its U.S. streaming operation added 1.6 million subscribers and generated $50 million in profit. CEO David Zaslav stated during the company's earnings conference call that Warner Bros. Discovery expects the unit will maintain profitability through the rest of the year. "And," he added, "it's worth noting, HBO Max and Discovery+ are still only available to less than half of the global streaming market. So there is significant runway ahead of us."
Source Fool.com
