With a market cap of $70 billion, New York-based Warner Bros. Discovery, Inc. (WBD) is a global media and entertainment company formed through the merger of WarnerMedia and Discovery. Its portfolio includes prominent film and television studios, cable networks, and the Max streaming platform. The company operates across content creation, distribution, and direct-to-consumer streaming, leveraging franchises such as DC, HBO, Warner Bros. Pictures, Discovery, and CNN.
Companies valued $10 billion or more are generally considered “large-cap” stocks, and Warner Bros. Discovery fits this criterion perfectly.
WBD shares met their 52-week high of $29.81 in the last trading session. Warner Bros. Discovery’s shares have surged 135.5% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 8.1% rise over the same time frame.
In the longer term, WBD stock is up 179.4% on a YTD basis, outpacing NASX’s 22.5% rise. Moreover, shares of the cable TV channel operator have climbed 171.2% over the past 52 weeks, compared with NASX’s 20.2% rally over the same period.
Despite a few fluctuations, the stock has been trading mostly above its 50-day and 200-day moving averages since May, reinforcing a bullish trend.
Warner Bros Discovery is at the center of an escalating takeover battle. After Netflix, Inc. (NFLX) secured a $72 billion deal to acquire WBD’s studios and streaming assets, Paramount Skydance Corporation (PSKY) countered with a hostile $108.4 billion all-cash bid, offering shareholders significantly more upfront value. Paramount’s offer is backed by major financiers, including Jared Kushner’s Affinity Partners, Middle Eastern sovereign funds, and the Ellison family. The competing bids have drawn political attention, added uncertainty to WBD’s strategic direction, and intensified a high-stakes fight for control of premium assets such as HBO, DC, and Warner Bros studios.
In comparison, top rival Live Nation Entertainment, Inc. (LYV) has lagged behind WBD stock. LYV stock has jumped 7.2% on a YTD basis and 3.3% over the past 52 weeks.
WBD has a consensus rating of “Moderate Buy” from the 26 analysts in coverage, and the stock is trading above the mean price target of $22.63.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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