Warner Bros. (WBD) Stock Price Prediction, Earnings of August 3

• WBD Stock rallied 2.31% in a week, 17.07% in six months, and 33.37% YTD. 
• In Q1 2023, Warner Bros Discovery Inc.’s ad revenue gained 55.7% (YoY).

Warner Bros. Discovery Inc. (NASDAQ: WBD) will report Q2 earnings on August 3, 2023 investors hope for positives, but WBD Stock is down by 1.53%. The company generates over 50% of its revenue from advertising, and the recently released movie Barbie is performing well at the box office. Wall Street would love to see Warner Bros. Stock perform well ahead. 

Warner Bros. Discovery Inc. (WBD) Stock: Financial Analysis

Major Hollywood studios agreed to hold talks with the striking writers of the Writers Guild of America (WGA) on August 4, 2023. The strike demanding higher pay began in May 2023. The Alliance of Motion Picture and Television Producers (AMPTP) reached out to WGA for a meeting. 

AMPTP will be negotiating on behalf of Walt Disney Co (NYSE: DIS) to $89.03, down by 0.16%, Netflix Inc. (NASDAQ: NFLX), down by 0.08% to $438.62, and Warner Bros. Discovery Inc. (NASDAQ: WBD) $12.87 falling 1.53%.

In the first quarter of 2023, the revenue from advertisements gained 55.7% year-over-year (YoY) to $2.29 Billion. Additionally, Warner Bros. Discovery U.S. Ad Sales announced a new partnership with 605, ABCS Insights, DISQO, EDO, Pilotly, and Loopme, showcasing the efficacy of their advertising campaign across all platforms.

Coping with macroeconomic headwinds, Warner Bros. Discovery Inc. could be laying off more employees. Executives are already leaving the media company, plus the SAG-AFTRA strike might drag longer than expected, pulling the stock prices down.  

Warner Bros. Discovery Inc. (NASDAQ: WBD): Technical Analysis

At press time, WBD stock is trading at $12.87, falling 1.53%; previous close and open were at $13.07 to $13.02, respectively. The 52-week range is from $8.82 to $17.65, hinting that positive earnings could create new highs. With an average volume of 20.68 Million shares, the market cap is $31.353 Billion. 

The trailing twelve-month (TTM) earnings per share are negative $5.01, showcasing weakness. Analysts provided a 2.57 rating for moderate buy, placing a target at $20.28 with a 57.6% upside. 

Warner Bros. Discovery announced its last earnings on May 5, 2023, where the reported revenue of $10.7 Billion fell short of beating the estimated value of $10.751 Billion by 0.48%. Compared to the previous quarter, the revenue jumped by 238.71% but failed to hit the estimates.

At the same time, the reported earnings of $0.00 surpassed the expected value of negative $0.123 by a whopping 99.99%. When compared to the previous quarter, EPS fell by 148.36%. The last earnings caused Warner Bros. stock to gain 14.60% while the  (TTM) revenue stayed at $41.36 Billion. 

The subsequent earnings would be reported on August 3, 2023, before the opening bell. Analysts estimate the EPS to be around minus $0.345, and revenue could be $10.453 Billion. These expectations are similar to last quarter, but with macroeconomic conditions, changing advertisement scenarios, and ongoing strikes, Warner Bros. Discovery Inc. might need to meet the cut. 

Warner Bros. Discovery Inc. (WBS) Stock: Candle Exploration

After defeating the bull trap in July 2023, Warner Bros.’ stock price is consolidating in a range. The media company rarely posts two consecutive positive earnings. Hence, it is expected that the history would repeat and earnings would be negative. If so, the price could fall to the demand zone. 

A stooping trendline along with descending 200EMA hints at a drop. If earnings turn positive, the price shall continue consolidating in the expected range. Momentum will be visible only after the price sustains above R1 at $14.14. 

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