Daniel Loeb's Third Point bought 20 million WBD shares worth $533 million, backing 24/7 Wall St.'s $32 BUY target implying 14% upside. WBD trades at just 7x EV/EBITDA versus Netflix's P/E of 30 and Disney's 15, making it look deeply discounted against streaming peers. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Warner Bros Discovery didn't make the cut.
Grab the names FREE today. Discovery (NASDAQ:WBD) has become one of the most talked-about setups in media, backed by billionaire investor activity. Third Point disclosed a 20 million-share WBD position worth about $533 million in Q2 2026, making it Daniel Loeb's largest new disclosed position, funded by exits from NVIDIA and Broadcom.
Our 24/7 Wall St. price target for WBD is $31.88, implying 13.89% upside from $27.99. Our recommendation is buy at moderate confidence. WBD is up 137.61% over the last year but only 2.64% over one month and -2.88% year to date, sitting just below its $30 52-week high.
Q2 2026 revenue of $8.72 billion missed by 5.39%, but GAAP EPS of $0.06 beat the -$0.10 consensus by 158.94%. Operating income jumped 228.11% year over year. Streaming revenue crossed $3 billion for the first time with adjusted EBITDA of $512 million, up 63% ex-FX.
The Paramount Skydance merger remains on hold with a June 1, 2027 outside date, providing optionality beyond operating results. Our bull scenario points to $33.28, an 18.9% return. HBO Max is targeting 150 million subscribers by year-end 2026, and management flagged "a powerful and impressive business turnaround from a predominantly U.S.-only HBO streaming business losing $2 billion plus in 2022 to a global high growth asset." The 2027 slate includes Dune: Messiah, Man of Tomorrow, The Batman Part II, and LOTR: Hunt for Gollum, and the Harry Potter series debuts Christmas Day 2026.
JB Perrette told analysts "2027 is arguably our best year yet." A completed Paramount Skydance deal or competing bid would likely push the stock through consensus targets. Our bear scenario is $25.35, a 9.4% drawdown. Net leverage sits at 3.4x on $29.7 billion of net debt, Global Linear Networks revenue fell 17%, and the NBA absence created a 20% ex-FX ad headwind.
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