WBD Stock Forecast & Price Target

Warner Bros. Discovery (WBD) has demonstrated significant positive momentum, with a total of 116.9 million global direct-to-consumer subscribers as of December 31, 2024, reflecting a 20% year-over-year increase and a notable gain of 6.4 million subscribers quarter-over-quarter. The direct-to-consumer segment has shown strong financial performance, with revenues rising 5% year-over-year to $2.7 billion in the fourth quarter of 2024, alongside a substantial EBITDA of $409 million, indicating robust margin expansion compared to a previous loss. Analysts anticipate revenue growth to continue, projecting full-year revenues of approximately $39.3 billion in 2025, with an improvement to $40.5 billion in 2026, driven by the successful consolidation of streaming platforms and increased advertising revenue.

Warner Bros. Discovery reported a revenue decline of 2% year-over-year for 4Q24, totaling $10.0 billion, which fell short of estimates, along with a significant EPS loss of $0.20, a 23% decrease from the previous year. The networks segment experienced a 5% revenue drop to $4.8 billion and a substantial 13% decline in adjusted EBITDA, indicating deeper challenges within the TV networks business. Additionally, cash from operations fell by 24% year-over-year, alongside a 27% decrease in free cash flow, reflecting mounting pressures from declines in ad revenue and subscriber numbers in the competitive streaming landscape.