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 $27.75: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: Below-average business quality.
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 $27.75: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 3.8/10, high confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 81d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-08-16Recent Developments — Warner Bros. Discovery, Inc. -
Latest news
- NEWS Paramount Skydance Says All Regulatory Clearances Secured For Proposed Warner Bros. Discovery Acquisition; Says State AG — benzinga Aug 14, 2026 positive
- NEWS 'Traders Bet on Growing Chance of Paramount-Warner Deal Closing' - Bloomberg — benzinga Aug 14, 2026 positive
- NEWS The Hulk Fame Mark Ruffalo Slams Jamie Dimon Over Paramount-Warner Merger, Blames Ellison-Trump 'Cozy Relationship' for — benzinga Aug 13, 2026 negative
- NEWS Charles Gasparino Posts On X "SCOOP: There is optimism inside the Ellison camp that there will be a settlement with @AGR — benzinga Aug 12, 2026 neutral
- NEWS 'David Ellison Threatens To Pull Paramount Out Of California Starting Oct. 1 If States Refuse To Negotiate Settlement In — benzinga Aug 11, 2026 negative
Generated 2026-08-16T19:37:02Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
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 — -11.2% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -8.8%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $27.75: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.8/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $26.93. Score 3.8/10, high confidence.
Take-profit target: $32.19 (-7.3% upside). Prior stop was $26.93. Stop-loss: $26.93.
Target reached (-7.3% upside); Quality below floor (2.8 < 4.0).
Warner Bros. Discovery, Inc. - trades at a P/E of N/A (forward 273.8). TrendMatrix value score: 5.0/10. 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.