Warner Bros. Discovery (WBD) shares are sinking Wednesday after reporting third-quarter losses and weakening advertising revenue, all the while the media company balances its rebranding and streaming strategies for assets like CNN. Yahoo Finance Live monitors the stock action and comments on the bottom line pull hitting Warner Bros. Discovery shares.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
BRAD SMITH: All right, guys. Let's switch gears here and talk a little Warner Brothers Discovery. Shares are taking a hit this morning on weaker streaming subscribers and some downbeat guidance for the coming year. The entertainment group saying, the impact of strike action and a weak advertising market will linger into 2024. We're taking a look at the shares right now. They're down by about 15%. One of the things that jumped out to me within this was the acknowledgment of needing to lower the churn that they're seeing on Max here.
They've announced a lot of new live program offerings, CNN Max, Bleacher Report that on, that they mentioned as well. And of course, yeah, "Barbie," great quarter for that. But at the end of the day, it really does come back to these streaming figures and how that's going to impact more long term, the ability to make sure that revenue, and the global D2C subscribers are locked in over an extended period of time.
SEANA SMITH: And it brings me back also to the discussion I was having yesterday with Jeff Zucker. And I asked him just how a company like CNN, obviously, a property here of Warner Brothers, how they balance that, right? When we talk about they're trying their best to maintain some of the lucrative deals that they have on the cable-side, they also want to position themselves to be in a very strong position when it comes to streaming and what exactly that adoption looks like going forward. And he said to me that in the short run, yes, we are going to see some of the pressure on the bottom line.
You need to spend. It's going to take some time. It's not something obviously that happens overnight. So we are going to see a bit of an impact here, at least in the short term when it comes to that bottom line. But they have to figure out how to best balance this transition. It's going to be challenging. It's going to be difficult. And I think that's exactly what's reflected in these results here this morning. When you take a look at some of those other numbers here, you mentioned the subscriber numbers how they fell obviously missing the Street's expectations. But "Barbie" was a highlight there. We talked about the fact that the losses were wider than expected. They did narrow on a year-over-year basis.
And a lot of that being attributed to the strength that we did see in "Barbie" here over the last couple of months-- $1.5 billion.
BRAD SMITH: You know I wanted to come back and talk about this. Yes. 1 and 1/2--
[INTERPOSING VOICES]
SEANA SMITH: One of the biggest stories that we've been talking about.
BRAD SMITH: It is.
SEANA SMITH: Continuing themes, I should say.
BRAD SMITH: Not good enough for investors.
"stock" - Google News
November 08, 2023 at 10:12PM
https://ift.tt/aAmHQ5t
Warner Bros. Discovery stock sinks on Q3 miss - Yahoo Finance
"stock" - Google News
https://ift.tt/xEdZwMK
https://ift.tt/Vj3esT2
Bagikan Berita Ini
0 Response to "Warner Bros. Discovery stock sinks on Q3 miss - Yahoo Finance"
Post a Comment