Cost-cutting measures are hitting just about everywhere as businesses all up and down the line consider their next moves in the face of growing economic uncertainty. Even Warner Bros. Discovery (NASDAQ:WBD) is reconsidering, and it’s already looking to future cost-cutting efforts. This has left investors on tenterhooks with anticipation, and shares right now are relatively flat as a result.
Warner is looking to make cuts, and reports note that the cuts are likely to start in the marketing division and the technology sector of its streaming operations. In the last year alone, Warner has dropped about 2,000 employees from its roster. That’s already produced substantial cost savings, but Warner is far from done on that front.
Though layoffs may not have actually happened, reports suggest that Warner is also considering a price hike on Max and Discovery+ in a bid to tip the scales the other way and improve the profit equation accordingly.
Backing Up the Content
But just price hikes alone won’t do unless there’s a reason to stick around. And Warner is having trouble enough on that front due to its recent struggles with NBA rights. But reports note that could be changing soon; Dale Earnhardt Jr. is said to be out of NBC Sports, and is instead making his way toward Warner. He’ll also handle commentary duties for Amazon’s (NASDAQ:AMZN) NASCAR efforts. Plus, Warner’s working on a new true crime show known as “True Crime News,” which will feature Ana Garcia in hosting duties. The show covers pretty much exactly what a show called “True Crime News” would cover.
Is Warner Bros. Discovery Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 42.06% loss in its share price over the past year, the average WBD price target of $13.61 per share implies 74.82% upside potential.
