Warner Bros. Discovery carries a quality score of only 2.9 — below the 4.0 investable floor — with earnings estimates cut by 12.7% over 30 days, consecutive earnings misses by large margins, and declining revenue, presenting a weak fundamental case despite positive free cash flow margins.
Thesis pillars
- Quality Below Floor Structural Weakness→Stable
- Earnings Deterioration Estimate Cuts→Stable
- Revenue Decline No Growth→Stable
- +1 more pillar — see the Why tab for full reasoning
Warner Bros. Discovery, Inc. - (WBD) Stock Analysis
Communication Services · Entertainment
Sell if holding. Engine safety override at $25.68: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
For convenience, the terms "Warner Bros. Discovery", "WBD", the "Company," "we," "us" or "our" are used in this Annual Report on Form 10-K to refer to both Warner Bros. Discovery, Inc. and collectively to Warner Bros. Discovery, Inc. and one or more of its consolidated... Read more
Sell if holding. Engine safety override at $25.68: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.3/10, moderate confidence.
Passes 3/7 gates (clean insider activity, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-07-25Recent Developments — Warner Bros. Discovery, Inc. -
Latest news
- NEWS This Warner Bros Discovery Analyst Is No Longer Bullish; Here Are Top 4 Downgrades For Monday — benzinga Jul 27, 2026 negative
- NEWS Seaport Global Downgrades Warner Bros. Discovery to Neutral — benzinga Jul 27, 2026 negative
- NEWS Paramount Skydance's $110 Billion Warner Bros. Discovery Acquisition Faces New Blow as Union Joins Fight Against Merger — benzinga Jul 27, 2026 negative
- NEWS Paramount Delays Warner Bros. Deal to June 2027 Amid Legal Fight — But Calls It 'Significant Win' — benzinga Jul 24, 2026 negative
- NEWS 'Paramount Agrees to Delay Warner Bros. Merger for Months' - The New York Times — benzinga Jul 24, 2026 neutral
Generated 2026-07-27T14:03:02Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-04-30Item 5.02MEDIUM. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On April 29, 2026, Warner Bros. Discovery, Inc.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
4 floor-breakers
Revenue shrinking — -1.0% YoY. Growth thesis broken unless recovery story develops.static
Unprofitable operations — net margin -4.7%. Quality floor flags this regardless of sector context.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $25.68: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.3/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $24.86. Score 4.3/10, moderate confidence.
Take-profit target: $26.03 (+1.0% upside). Prior stop was $24.86. Stop-loss: $24.86.
Target reached (1.0% upside); Quality below floor (2.9 < 4.0).
Warner Bros. Discovery, Inc. - trades at a P/E of N/A (forward 185.3). TrendMatrix value score: 4.5/10. Verdict: Sell.
25 analysts cover WBD with a consensus score of 3.3/5. Average price target: $30.
What does Warner Bros. Discovery, Inc. - do?For convenience, the terms "Warner Bros. Discovery", "WBD", the "Company," "we," "us" or "our" are used in this Annual...
For convenience, the terms "Warner Bros. Discovery", "WBD", the "Company," "we," "us" or "our" are used in this Annual Report on Form 10-K to refer to both Warner Bros. Discovery, Inc. and collectively to Warner Bros. Discovery, Inc. and one or more of its consolidated subsidiaries, unless the context otherwise requires.