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WBD · NASDAQ · STOCK

Warner Bros. Discovery (WBD) Stock Analysis

Communication Services Updated August 25, 2026
$28.70
52W $11.25 – $30.00
52/100
$71.58B
-22.5
1.56
AI Committee Verdict
Watch
52/100
Conviction: Contested · 50% agreement · 6 analysts
+2.2%
-6.8%
0.33:1
Contested

Is WBD Bullish or Bearish?

Mixed. Innellis AI committee rates Warner Bros. Discovery (WBD) Watch with a composite score of 52/100 , based on 6 analysts with 50% agreement. Last updated August 25, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +8.49 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -11.51 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Macro Analyst sees a compelling case. Risk Analyst remains cautious — bollinger bandwidth of 16.9% signals elevated volatility. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Price structure making higher highs and higher lows — Technical
  • MACD histogram positive -- bullish momentum — Technical
  • Weekly trend (uptrend) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • ROE of only -9.2% -- cheap may mean cheap for a reason — Value
  • Revenue declining -6.0% YoY -- this is not a growth story right now — Growth
  • RSI at 76 is in overbought territory — Technical
  • Bollinger bandwidth of 16.9% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 25, 2026
Overall Committee Score
52/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 79%
of 54 Communication Services peers
Value Analyst neutral
42 / 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
− ROE of only -9.2% -- cheap may mean cheap for a reason
Growth Analyst neutral
50 / 100 · Moderate confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− Revenue declining -6.0% YoY -- this is not a growth story right now
Technical Analyst bullish
61 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− RSI at 76 is in overbought territory
Risk Analyst bearish
35 / 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 16.9% signals elevated volatility
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst neutral
55 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3063.01)
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Investment Thesis Evolution

Committee score moved marginally from 51.5 to 51.5.

Comparing 2026-08-24 to 2026-08-25 (1 day apart).

Technical Analysis

RSI (14)
76.5
Overbought
MACD Histogram
0.212
Bullish Momentum
Trend Direction
Uptrend
Weekly: Uptrend
Market Structure
Mixed
Support
$26.62
Resistance
$29.20
Bollinger %B
0.86
Inside Bands
Price vs Moving Averages
EMA 9
$27.98 Above
EMA 21
$27.33 Above
EMA 50
$26.96 Above
EMA 200
$25.17 Above

Fundamental Analysis

Valuation
96
Growth
61
Profitability
19
Financial Health
38
Cash Flow
70
Valuation
P/E Ratio -22.5×
P/B Ratio 2.18×
PEG Ratio 0.17
Dividend Yield 0.00%
52W High $30.00
52W Low $11.25
Quality & Growth
ROE 202.4%
ROA 72.6%
Gross Margin 4343.1%
Operating Margin 535.2%
Revenue Growth YoY
Debt / Equity 0.98
AI Fundamental Assessment
P/E ratio of -22.5 (inexpensive relative to a 15-40x range); Price-to-book of 2.2x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 2.0%; Return on assets of 0.7%; Net margin of -8.8%; Gross margin of 43.4%; Current ratio of 0.78 (tight short-term liquidity); Debt-to-equity of 0.98; Free cash flow per share is positive (0.87); Most recent quarter beat estimates by 142.3%; 2 consecutive earnings beats; EPS growth accelerating (+50.0% -> +220.0% QoQ); Average YoY EPS growth of -90.5%; Analyst estimates falling over recent quarters
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