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
Range Bound setup
Communication Services · Entertainment
Sell if holding. Engine safety override at $28.25: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.5/10. Specifically: Elevated put/call ratio: 4.02; Below-average business quality; Negative price momentum.
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 $28.25: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.5/10. Specifically: Elevated put/call ratio: 4.02; Below-average business quality; Negative price momentum. Chart setup: RSI 56 mid-range, Bollinger mid-band. Score 3.5/10, high confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 61d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-09-05Recent Developments — Warner Bros. Discovery, Inc. -
Latest news
- NEWS Adam Schiff Warns Trump’s Alleged Corruption Could Hit Your Wallet and Jobs: ‘One Thing Is for Certain…’ — benzinga Sep 2, 2026 neutral
- NEWS California Attorney General Says Settlement Talks Not Currently Scheduled With Paramount Skydance — benzinga Aug 25, 2026 neutral
- NEWS Billionaire Investor's Biggest Bet Isn't Amazon or Alphabet — It's Warner Bros. Discovery — benzinga Aug 24, 2026 positive
- NEWS Paramount Spokesperson Says Co Is "Ready To Continue Good Faith Discussions" With California — benzinga Aug 24, 2026 neutral
- NEWS 'California AG Rob Bonta cancels Paramount settlement meeting, citing ‘lack of good faith’'- CNBC — benzinga Aug 24, 2026 negative
Generated 2026-09-05T22:02:20Z.
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
Momentum 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 $28.25: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 3.5/10. Specifically: Elevated put/call ratio: 4.02; Below-average business quality; Negative price momentum. Chart setup: RSI 56 mid-range, Bollinger mid-band. Prior stop was $27.61. Score 3.5/10, high confidence.
Take-profit target: $32.49 (-8.2% upside). Prior stop was $27.61. Stop-loss: $27.61.
Target reached (-8.2% upside); Quality below floor (2.8 < 4.0).
Warner Bros. Discovery, Inc. - trades at a P/E of N/A (forward 403.6). 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.