stock

WBD Stock Can Continue To Decline Further To Lower Levels

  • Warner Bros Discovery Inc. is about to announce its earnings and revenue on 08 Nov 2023.
  • Warner Bros Discovery Inc. has more than 37.5K employees working in the company.

Warner Bros Disovery Inc., also known as Warner Bros Entertainment Inc. was founded in the year 1923 by four brothers. It is an American film and entertainment studio and has its headquarters in Burbank, California. 

Warner Bros Discovery Inc. is popularly known for its film studio called Warner Bros. Motion Picture Group. The company serves worldwide and was founded by four people known as Harry Warner, Albert Warner, Sam Warner, and Jack L. Warner. Also, the current CEO of the company are Michael De Luca and Pamela Abdy.

WBD stock has 2.21B shares floating in the market resulting in a market cap of $25.276B. The beta for the stock is 1.75 resulting in a higher volatility in the stock than the overall market. 

The EPS for the WBD stock is also negative resulting in -$2.76. The PE ratio for the stock has also declined to -3.87 while the company has managed its debt very well resulting in a debt/equity ratio of 104.02%.

Warner Bros Discovery Inc. Stock Performance Analysis

Source: Tradingview

Warner Bros Discovery Inc.’s revenue suddenly spiked by $21.63B in the year 2022 as compared to the previous year. Despite this advance in the revenue of the stock, the net income of the company is still negative at -$7.37B. This results in a negative profit margin of -21.80%. Also, a very high surge in the debt of the company can also be seen resulting in $52.60B.

Price Targets For WBD Stock

Source: Tradingview

The experts are very optimistic about the stock in the long term and are looking for very high prices in the future. Almost 24 analysts as per Tradingview are bullish on the WBD stock and have offered a maximum target price of $33.00 which will result in a return of 218.23% if the stock is bought at CMP. Even the average price for the stock is 73.90% above the CMP.

Will It Be Right To Expect Further Lower Levels In WBD Stock?

a by writer11_gsm on TradingView.com

WBD stock witnessed a huge sell-off in March 2021. The decline in price was so fast and huge that the stock fell by more than 45% in just one week. This led to a change in trend to bearish and it is still followed in the stock.

The WBD stock was making dynamic highs and lows on the charts leading to a symmetric triangle pattern. The price later broke down below the pattern and is currently making a lower low pattern. 

With a consistent decline in the share price of WBD stock, the 50-day and the 200-day EMAs are following a death cross. This represents the selling sentiment in the stock price leading to a consistent decline in share price.

The RSI for the WBD stock is giving a sell signal as it is trading below the 50 level and is consolidating in a range of 30-50. 

Conclusion

The financials of the company do not seem supportive of the WBD as the debt of the company has highly advanced with an increase in revenue. The share price has also been sharply declining for more than a year. Indicators like the EMA and the RSI, all have become bearish for the stock.

Therefore, as the WBD stock price is in a downtrend, it can decline to the first support level of $8.70 easily and if it breaks below the level further decline can be seen.

Technical Levels
  • Support levels- $5.00 and $8.80
  • Resistance levels- $12.00 and $14.60
Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.

Deepika

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