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.

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Source Fool.com