Insights

Why Warner Bros. Discovery Stock Spiked Higher Today

What happened

It was another good day for Warner Bros. Discovery (NASDAQ: WBD) as the stock was up 4.1% on Tuesday at 3:08 p.m. ET. It had been up as high as 6.8% midday. It is the second day in a row that the entertainment company was a market mover, as it was up more than 3% Monday.

What drove its stock higher on a day when the Dow Jones Industrial Average and the S&P 500 were both in the red?

So what

For starters, Warner Bros. Discovery has gotten a jolt from the success of its film DC League of Super-Pets, which finished first at the box office in its opening weekend, raking in $23 million last weekend. It is roughly in line with the amount of money Universal’s animated film The Bad Guys made on its opening weekend in April, and that went on to make $246 million worldwide.

DC League of Super-Pets could have some legs as it’s late in the summer and there aren’t many blockbusters on the horizon until October.

But now investors may be turning their focus to the entertainment company’s upcoming second-quarter earnings report on Thursday. It is the first full-quarter report since the company formed after AT&T spun off WarnerMedia and it merged with Discovery, which runs the Discovery Channel.

Now what

Obviously, the Aug. 4 earnings release is on the immediate horizon for Warner Bros. Discovery. There have been rumors of layoffs swirling, but there is also much anticipation for not only earnings but plans moving forward in the newly merged entity.

For instance, the Warner Bros. Discovery property HBO will release its much-anticipated House of the Dragon series on Aug. 21. This is the prequel to the highly successful Game of Thrones series.

The stock is trading at $16 per share with a price-to-earnings ratio of 7, but a forward P/E of 21, indicating the market is expecting significant growth.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends Warner Bros. Discovery, Inc. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info