Some things are inherently bad signs when it comes to a company. Warner Bros Discovery (NASDAQ:WBD) might have just seen one of them as its head of corporate communications departed the company after two years in. There are some more positive developments waiting in the wings, but investors are nervous and sent Warner shares down nearly 2% in Friday afternoon’s trading.
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The reports noted that Nathaniel Brown, head of corporate communications and who CEO David Zaslav referred to as “…a tireless and formidable advocate for the company,” was departing. Reports note that the decision for Brown to leave was mutual, but he had no plans for his next position. Moreover, Warner doesn’t have a replacement lined up and has already begun a search for new candidates, likely planning to hire outside the business. In the meantime, though, Katie Martin Kelley—head of Warner Bros. Motion Picture Group communications—will fill in the gap.
Warner is Fighting to Keep Subscribers
Here’s where things get interesting. Warner, right now, is operating in an environment where people are increasingly cutting off their streaming services in a bid to save money as costs go up and quality erodes on the lower tiers, including more ads and lower-resolution footage. Reports noted that premium streamers like Warner lost viewers at a brisk clip, with about 25% of subscribers to all premium services canceling at least three of their streaming services. However, Warner is fighting back and using an oddly appropriate tool.
It’s preparing a complete virtual world known as Futureverse based on—brace yourself—”Ready Player One.” That’s right; the franchise that was itself a commentary about people escaping disastrous economic conditions via a virtual world is now being offered as an actual virtual world by Warner, which is losing customers to increasingly disastrous economic conditions.
What is the Target Price for Warner Bros Discovery Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 1.59% loss in its share price over the past year, the average WBD price target of $16.33 per share implies 46% upside potential.
