Things weren’t looking great for Warner Bros. Discovery (NASDAQ:WBD) in the early part of the day, thanks to an earnings report that couldn’t attract much interest from investors. So, what could have possibly turned things around to the point where shares are up nearly 3% in the closing minutes of Thursday’s session? The answer is surprisingly simple: a new movie.
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And not just any new movie, either; Warner pulled a big surprise out from under its hat, and revealed that a new string of “Lord of the Rings” movies would be coming back to theaters, starting in 2026. The first one is titled “Lord of the Rings: The Hunt for Gollum” and will feature, well, Gollum.
Peter Jackson is said to be back in on this and will be “…involved at every step of the process.” Considering how well the previous Lord of the Rings titles did—the recent streaming series notwithstanding—that should mean a good slug of cash for the studio, even if it will take a while to actually count it.
Worlds Collide in New Streaming Bundle
And as if that weren’t catalyst enough to get something going, try this on for size: Warner is poised to get together with Disney (NYSE:DIS) to create an entirely new streaming bundle. The bundle will bring together Hulu, Disney+, and Max, which will put Marvel and DC under the same roof – a dream come true for geekdom.
Prices have not yet been announced, but reports note that the increasingly popular ad-supported tier will be in play on some level. With Max now around 100 million total subscribers, combining it with Disney+ and Hulu may be the best strategy yet to attract new subscribers to each bundle.
Is Warner Bros. Discovery Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys, seven Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 39.11% loss in its share price over the past year, the average WBD price target of $13.61 per share implies 69.6% upside potential.
