Is Warner Bros. Discovery Stock the Best Value in Media?
Established media companies like Warner Bros. Discovery (NASDAQ: WBD) that own top movie studios may have natural advantages to compete with Netflix and Disney, given their century-long heritage of delivering countless blockbusters on the silver screen.
But the company's investments in streaming are coming at a big cost as the latest financial results revealed. A weakening advertising market caused Warner Bros. Discovery to miss analysts' estimates on revenue and earnings in the fourth quarter.
Still, Warner Bros. Discovery has a load of top entertainment properties to monetize over the long term, and the stock looks cheap, trading at just 9 times trailing free cash flow. Let's weigh its strengths and weaknesses to determine if the stock is worth buying.
Source Fool.com
