Warner Bros. Discovery (NASDAQ:WBD) Rating Lowered to Strong Sell at Zacks Research

Posted by Stanley Muller on Jul 29th, 2026

Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

WBD has been the subject of a number of other reports. Weiss Ratings downgraded Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Thursday, May 7th. Guggenheim reissued a “neutral” rating on shares of Warner Bros. Discovery in a research report on Thursday, May 7th. UBS Group increased their target price on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. KeyCorp restated an “overweight” rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th. Finally, Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Warner Bros. Discovery currently has an average rating of “Hold” and an average target price of $27.04.

Check Out Our Latest Stock Analysis on Warner Bros. Discovery

Warner Bros. Discovery Price Performance

Warner Bros. Discovery stock opened at $25.61 on Monday. The company’s 50 day simple moving average is $26.65 and its 200-day simple moving average is $27.34. The company has a market capitalization of $64.21 billion, a price-to-earnings ratio of -36.59 and a beta of 1.54. Warner Bros. Discovery has a 1 year low of $10.76 and a 1 year high of $30.00. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.73 and a current ratio of 0.73.

Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($1.07). Warner Bros. Discovery had a negative return on equity of 4.77% and a negative net margin of 4.67%.The firm had revenue of $8.89 billion for the quarter, compared to analyst estimates of $8.89 billion. During the same period in the previous year, the company posted ($0.18) EPS. Warner Bros. Discovery’s revenue was down 1.0% on a year-over-year basis. As a group, equities research analysts expect that Warner Bros. Discovery will post -1.07 earnings per share for the current year.

Institutional Trading of Warner Bros. Discovery

Several institutional investors have recently modified their holdings of the stock. Harbor Investment Advisory LLC grew its position in shares of Warner Bros. Discovery by 111.2% in the 2nd quarter. Harbor Investment Advisory LLC now owns 942 shares of the company’s stock valued at $25,000 after buying an additional 496 shares during the last quarter. Swiss RE Ltd. acquired a new position in Warner Bros. Discovery in the fourth quarter valued at $26,000. Elevation Wealth Partners LLC grew its holdings in shares of Warner Bros. Discovery by 64.3% during the second quarter. Elevation Wealth Partners LLC now owns 1,009 shares of the company’s stock worth $27,000 after purchasing an additional 395 shares during the last quarter. Fideuram Asset Management Ireland dac purchased a new position in shares of Warner Bros. Discovery during the fourth quarter worth about $29,000. Finally, MV Capital Management Inc. acquired a new stake in shares of Warner Bros. Discovery during the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 59.95% of the company’s stock.

Trending Headlines about Warner Bros. Discovery

Here are the key news stories impacting Warner Bros. Discovery this week:

Positive Sentiment: TKO CEO Ari Emanuel defended the Paramount-WBD merger, arguing that blocking the deal could damage Hollywood and that the combined company would be better positioned to compete in a rapidly changing entertainment market. TKO CEO Ari Emanuel Warns Blocking Paramount-WBD Merger Could Hurt Hollywood
Positive Sentiment: Paramount chief executive David Ellison reiterated confidence that the WBD transaction will close, which may reassure investors that the deal remains active despite the delay and litigation. David Ellison Confident WBD Deal Will Close
Neutral Sentiment: Coverage of Wall Street price targets provides context for valuation, but the range of expectations remains highly dependent on whether the Paramount transaction receives regulatory approval. Wall Street Analysts’ Target Price for Warner Bros. Discovery Stock
Negative Sentiment: California and other states are pursuing an antitrust lawsuit to challenge the Paramount-WBD combination. SAG-AFTRA also opposes the deal, while some WBD executives reportedly hope the litigation stops it, increasing the risk of further delays or a failed transaction. SAG-AFTRA Opposes Paramount-WBD Deal
Negative Sentiment: Seaport Research downgraded WBD to “neutral” from “buy” after the merger delay, citing insufficient regulatory clarity. The downgrade followed a broader pullback in the stock and highlights the near-term overhang on shares. Warner Bros Stock Downgraded After Paramount Merger Delay
Negative Sentiment: WBD sued Amazon, alleging that Amazon improperly recruited HBO Max executives and seeking restrictions on future employee hiring. The litigation could create additional legal costs and operational disruption, although it may help WBD retain key talent. Warner Bros. Discovery Sues Amazon Over HBO Max Executive Hire

About Warner Bros. Discovery

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Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.

The company’s core activities include film and television production and distribution through units such as Warner Bros.