Should I Buy WBD? WBD 2026 Analysis

Should You Buy Warner Bros Discovery Inc (WBD) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

27.600

1 Day change

-1.36%

52 Week Range

30.000

Analysis Updated At

2026/01/26

Warner Bros Discovery Inc (WBD) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock faces significant financial challenges, insider selling, and mixed analyst sentiment. While the potential Netflix acquisition could be a positive catalyst, regulatory scrutiny and poor financial performance make this a risky investment at this time.

Technical Analysis

The technical indicators show a neutral to slightly bearish trend. The MACD is below 0 and negatively contracting, RSI is neutral at 52.614, and moving averages are converging. The stock is trading near its pivot level of 28.708, with support at 28.162 and resistance at 29.255. Pre-market price is down 0.77%, indicating weak momentum.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Options data shows a bullish sentiment with a low put-call ratio for both open interest and volume, indicating more interest in calls than puts.

Technical Summary

Sell

Buy

Positive Catalysts

Netflix's potential acquisition of Warner Bros for $83 billion could be a major positive catalyst, as it would enhance Warner Bros' valuation and provide shareholder value. Additionally, gross margin increased by 18.32% YoY in Q3 2025, showing some operational improvement.

Neutral/Negative Catalysts

The company's financial performance is weak, with revenue down 6.01% YoY, net income down 209.63% YoY, and EPS down 220.00% YoY. Insider selling has increased by 326.17% over the last month, signaling a lack of confidence from insiders. Regulatory scrutiny over the Netflix acquisition could delay or derail the deal.

Financial Performance

In Q3 2025, Warner Bros reported declining financials, with revenue at $9.045 billion (-6.01% YoY), net income at -$148 million (-209.63% YoY), and EPS at -0.06 (-220.00% YoY). However, gross margin improved to 34.74% (+18.32% YoY), indicating some operational efficiency.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is mixed. Recent upgrades include a Buy rating from Rothschild & Co Redburn with a $28 price target and Argus with no specified target. However, Spin-Off Research downgraded the stock to Hold with a $30.50 target. Morgan Stanley raised its price target to $29 but maintained an Equal Weight rating. Analysts see potential value in the company but remain cautious due to financial challenges and industry uncertainties.

14 Analyst Rating

Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

9 Hold

0 Sell

Moderate Buy

Current: 27.980

Low

14.75

Averages

24.98

High

Current: 27.980

Low

14.75

Averages

24.98

High

UBS

Neutral

maintain

$20 -> $30

AI Analysis

2026-01-28

New

Reason

UBS

Price Target

$20 -> $30

AI Analysis

2026-01-28

New

maintain

Neutral

Reason

UBS raised the firm's price target on Warner Bros. Discovery to $30 from $20 and keeps a Neutral rating on the shares.

Morgan Stanley

Equal Weight

maintain

$15 -> $29

2025-12-18

Reason

Morgan Stanley

Price Target

$15 -> $29

2025-12-18

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Warner Bros. Discovery to $29 from $15 and keeps an Equal Weight rating on the shares. The Media and Entertainment industry heads into 2026 with "solid fundamental momentum," says the analyst, who recommends stocks in the group that it believes are insulated from AI disruption, will benefit from demand for premium experiences, or have a differentiated earnings outlook.

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WBD Should I Buy

WBD Should I Buy

Should You Buy Warner Bros Discovery Inc (WBD) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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