While much of the world’s gaze is fixed on the Olympics right now, an unexpected development emerged for media giant Warner Bros Discovery (WBD). It turns out that its Olympic content is drawing in a lot of views in Europe, and that revelation was enough to send shares up modestly in the closing minutes of Monday’s trading session.
A Variety report noted that Warner Bros’ Max and Discovery+ streaming platforms brought in more unique viewers for the Paris Olympics in two days alone than the entire Tokyo version back in 2021. Max launched internationally just ahead of the Olympics, hoping for a big gain in viewership and new subscriptions. That plan seems to have paid off in a big way.
In fact, Max is now 80% of Warner’s entire streaming audience, at least for the Olympics in Europe. Warner even set a new record for streaming subscriber acquisitions, landing the most it’s ever seen in a single day throughout Europe.
The NBA Fights Back
Meanwhile, Warner’s attempt to get the NBA licenses back isn’t exactly going well. New reports note that the NBA considers Warner’s case to be “without merit.” Though admittedly, that’s likely a pretty common thing to say when you’re being sued, as admitting that the other guy really has a point is probably a quick way to lose.
The NBA, of course, plans to set its lawyers on Warner, which you would expect. But considering that Warner is looking to join in on the Venu network, it needs a sports product to bring to the table. Without that, the reasons to keep Warner in on the action sort of fall apart.
Is Warner Bros. Discovery Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 10 Buys, six Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 35.81% loss in its share price over the past year, the average WBD price target of $12.50 per share implies 48.54% upside potential.
