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Warner Bros. Discovery is a powerful entertainment play

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media entertainment company Warner Bros. Discovery (NYSE: WBD) Since the spin-off, the stock has fallen to an all-time low of $12.77, down 41% year-to-date. Formerly Discovery Networks, its merger with WarnerMedia creates a content powerhouse that includes popular brands like Food Network, Discovery, CNN, TLC, Cartoon Network and Animal Planet to Science Channel, Cinemax and HBO Max. Its vast content library spans documentaries, reality shows, blockbuster movies and perhaps the most iconic comics brand, DC. DC alone has some of the world’s most famous superheroes in his franchise, including Superman, Batman, Wonder Woman, and the Justice League. The stock has had insider buying in the $18 to $20 range from April to May, and has even attracted his manager, Big Short Fund Mike Burry. rice field. The company trades at 7.25x earnings and has enough content to rival the big streamers. Netflix (NASDAQ: NFLX), Disney (NYSE: DIS), Amazon Prime Video (NADSAQ: AMZN), When Paramount (NASDAQ: PARA)The Marvel Comics Universe (MCU) may have peaked, but its rival DC Extended Universe (DCEU) is just getting started. Its collective streaming audience is he 100 million subscribers and continues to grow. WBD also owns popular video game franchises such as LEGO branded video games, Mortal Kombat, Suicide Squad and the Batman Arkham series. The streaming wars have sent streaming and content company stocks soaring in 2021 and crashing in 2022. Cautious and patient investors seeking exposure to the powerhouse of media entertainment content can see an opportunistic drop in Warner Bros. Discovery stock. – MarketBeat

FY2022 First Quarter Financial Results Announcement

On April 26, 2022, WBD announced its first quarter 2022 results for the quarter ending March 2022. As this is the first quarter after the merger, it does not include WarnerMedia’s business, only Discovery Inc. Q1 2022 revenue was $3.16 billion, an increase of 13% year-over-year. International advertising revenue he increased by 5%. Net income was $456 million. Total adjusted OIBDA was $1,027 million. The company ended the quarter with cash and cash equivalents of $4.2 billion against total debt of $15.1 billion, up 2.7x 2.7x. The Company ended the quarter with 24 million of his DTC subscribers, an increase of 2 million from Q4 2021. WBD CEO David Zaslav commented: Franchise, and portfolio of brands in our industry. Importantly, we also have an unmatched global footprint of touchpoints to put content in the hands of consumers on any screen. To achieve this, we are bringing together a strong leadership team into a streamlined structure that promotes greater command and control and strategic clarity across the company. About the big opportunity in front of you. ”

Conference call essentials

CEO Zaslav spoke about the transformational merger of Discovery and WarnerMedia and how the future looks bright for the combination. He spoke about his IP content, which is world-class, and the company’s ability to distribute across TV, streaming, and theater for a balanced monetization model. The goal is to drive permanent and sustainable free cash flow generation. We plan to offer both premium ad-free content and a low-priced ad-light tier. This is modeled after the great success of the best of his ARPU products. Overall, the streaming network has him with 100 million subscribers and counting. The distribution network includes theatrical, gaming, premium home video, pay TV, and free-to-air cashier ringing capabilities. The merger will also generate more than $3 billion for him through cost synergy plans.

WBD Opportunistic Pullback Price Levels

The rifle chart on weekly and daily timeframes gives you an accurate picture of what’s going on with the WBD stock. The weekly rifle chart hit a post-merger bottom near $12.75. Fibonacci (fib) levels. The downtrend in the weekly rifle chart is starting to stall as the weekly 5-period moving average (MA) stalls at $14.37 and the resistance of the 15-period moving average continues to fall at $16.25. . The weekly Stochastic is also about to bounce off the 10 band.every week Low market structure (MSL) A buy will trigger a breakout above $15.13. The weekly Bollinger Bands (BB) have a lower floor of $6.89, a higher BB of $30.26 and a weekly 50 period MA resistance of $23.29. The daily rifle chart is trending upwards with the BB cap at $15.62 and the 50 period MA peaking at $15.27. The daily 5 period moving average is rising at $14.97 followed by the daily 15 period moving average support at $14.40. The daily Stochastic has been stretched above the overbought 80 band level and is stalling in preparation for a potential reversal or high band mini-pup. Cautious investors can watch for opportunistic price pullbacks at $14.33, $13.43, $12.75 Fib, $12.26 Fib, $11.64 Fib, $10.67, $10.07 Fib, and 9.67 Fib . The upward trajectory ranges from the $17.75 Fib level to the $23.99 Fib level.

Warner Bros. Discovery is a powerful entertainment play