Warner Bros. Discovery WBD Stock Crashes After First Earnings


Warner Bros. Discovery $WBD stock crashed by over 15% after the first earnings since the merger.


The revenues of the company are down 1%, while the EBITDA is down 31%.


What the market is the most unhappy about are the high synergy costs and the amount of money the company is losing on building its streaming platform (DTC - Direct to Consumer) as it intends to merge Discovery+ with HBO Max.


While these earnings are not the best, we need to understand that they are are planning to have all the big changes right now, and these can be costly. There is a lot of work to do to clean this company, especially the WarnerMedia part, which was poorly managed by AT&T $T . And I believe that David Zazlav is the right man to do it.


I made a mistake overestimating the cash flow potential of the new company, but at the current price, it is still a buy. I won't be buying more since I have enough exposure for now.



Watch the video on YouTube:

https://www.youtube.com/watch?v=FWSkR7ZqyD4&list=UUPO3uUyoXSaFWG-Ldq1mqEQ


Full analysis of WBD:

https://ishfaaqpeerally.teachable.com/courses/662813/lectures/31950949


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