Give entertainment giant Warner Bros Discovery (WBD) credit; it has a lot of irons in the fire. Though some of these may not pan out as hoped, it will not be for want of choices. The uncertainty, however, has not inspired much confidence in investors. Shares were down over 2.5% in the closing minutes of Tuesday’s trading.
The big deal right now seems to be DC Studios, which has been part of Warner’s operation in one way or another since 1969, reports note. And Warner has been ramping up its DC involvement quite a bit lately. There has been something of a minor renaissance with animated series like Harley Quinn and Creature Commandos. Live-action series like Peacemaker have caught plenty of attention. And with co-head James Gunn involved, more and more new characters are making their way back.
And the theatrical releases are ramping up too. Releases for both Superman and Supergirl are on tap, as is a new series focusing on the Green Lantern universe. And that, reports note, is just the start.
So What’s the Problem?
There are a lot of theatrical properties coming around, but one point that is sparking concern is the video game slate. With the recent failure of Suicide Squad: Kill the Justice League still lingering in the noses of gamers and investors alike, like a dumpster fire comprised mainly of used Huggies, the fact that Warner seems to have little in the way of follow-up is not lost on concerned onlookers. The pipeline seems to consist of a few Lego titles, some mobile games, and a “refreshed version” of Hogwarts Legacy from 2023.
Worse, Warner is showing an almost shocking disregard for its catalog titles, and dumping them on, of all places, YouTube. Warner has reportedly dropped off over 30 different movies on YouTube with no kind of gating or monetization attempt beyond whatever advertising might be included. The titles range from 1962’s Mutiny on the Bounty to 2002’s The Adventures of Pluto Nash. Why these are not on Max instead is, at best, unclear.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on six Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 26.49% rally in its share price over the past year, the average WBD price target of $12.63 per share implies 18.09% upside potential.
