It’s one thing to have a plan that doesn’t work out the way you’d like. But it’s another to not have much of a plan at all. And new reports say that Warner Bros Discovery (NASDAQ:WBD) is discovering that difference thanks to CNN. Investors sent shares down over 2% in Wednesday afternoon’s trading after finding out the plan is a bit shaky.
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CNN has not been doing well lately. It’s been in a steady state of decline, losing ratings to websites and more conservative news outlets. Some thought that might turn around with the arrival of new CEO Mark Thompson, but the plan seems to be less about initiatives and more about aspirations. Thompson hopes to combine reportage and newsgathering into one unit and build a division specifically to “explore growth opportunities,” reports note. What those opportunities are, how much growth they will produce, or if they will work is distressingly unclear.
“This Stuff Takes Time”
When pressed on the matter, Thompson noted, almost peevishly, that “this stuff takes time.” Indeed, it does, but you should generally have a better idea of how much time it will take before it becomes clear it’s a waste of time. Or, conversely, that it’s actually working. We don’t even have that. Thompson also noted that CNN was in something of a shambles when he arrived, pointing out the widespread layoffs, the plummeting ratings, and “…rock-bottom employee morale.”
Thompson did offer a couple more fleshed-out ideas, like potentially setting up a subscription plan—some here might point out that’s just another word for “cable bill,” which they already have in place—and focusing on the “vertical video format” that younger consumers are increasingly turning to.
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 eight Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 19.5% loss in its share price over the past year, the average WBD price target of $15.55 per share implies 52.83% upside potential.
