Witnessing the birth of a company is common. But when such companies are being birthed by two giants, that only comes once in a while. Our stock pick for today is one that many analysts believe would surely be a giant in its space; Warner Bros. Discovery, Inc. (Nasdaq: WBD).
Source: Lloyd Dirks
AT&T’s breakout company, Warner Bros, and Discovery announced a merger of their media assets to form a new company, Warner Bros. Discovery. And as far as many analysts are concerned, this merger is one of a kind.
This merger is creating so much buzz in the stock market community, and rightly so. The number and caliber of products that the new company offer are nothing short of astonishing. Apart from Warner Bros Entertainment and Discovery Channel, some other products of Warner Bros. Discovery include CNN, CNN+, Cartoon network, DC, Animal Planet, Food Network, HBO, HBO Max, New Line Cinema, and so many more.
The best part about having that many products are diversity. Although all of those products are in the media industry, the variety within is so massive that you can expect the company to be able to stay afloat in most market conditions.
It is also worthy of note that, unlike many other new companies, Warner Bros. Discovery already has products in the market; products that are popular and favorite among their customers. This means the company only needs to work on improving these products rather than diverting resources into creating market awareness or building from the ground up.
Also, WBD presents a massive opportunity for growth investors. Since it only started trading yesterday, there’s an entire future ahead.
Should You Buy Warner Bros. Discovery Stock Now?
We hold a bullish sentiment for WBD stock, believing it is a buy now. Although there may be some short sells shortly, we think the company is the making of a media giant long term, and its shares are worth buying now.