Why Warner Bros. Discovery Is Down 48% This Year
Investors started 2022 with a healthy amount of enthusiasm for Warner Bros. Discovery (NASDAQ: WBD). The company began the year with its stock trading at approximately $30, a figure it had been hovering around for several months. And while the shares were far below their 2021 high-water mark of roughly $77, the fall was in line with the declining prices of other streaming stocks that were feeling the effects of a receding pandemic.
This year, Walt Disney (NYSE: DIS) has fallen roughly 35%, while Netflix (NASDAQ: NFLX) is down about 52%. Warner Bros. Discovery's shares are down 48% since the beginning of 2022. Here's why the company has had a tough time with its streaming competition.
Both Walt Disney and Netflix announced earlier this year that they would introduce new entry-level ad-supported plans in a push to grow their respective subscriber numbers. Walt Disney's $7.99-a-month Disney+ Basic (with Ads) will go live on Dec. 8, while Neftflix's similarly named Basic with Ads, priced at $6.99 a month, launches Nov. 3.
Source Fool.com
