Entertainment powerhouse Warner Bros. Discovery (NASDAQ:WBD) can’t catch a break. Even as it works to improve its relations with advertisers by offering them a way to better match their ad spend to the media available, Warner stock still goes into decline. In fact, it’s down over 1.5% in Thursday afternoon’s trading.
Warner brought out a new tool designed to better connect advertisers with the markets more likely to have an interest in their products and services. Dubbed “Olli,” it’s designed to help advertisers take advantage of the more fragmented but much more highly targeted digital market.
Given that Warner has some real monoliths available for advertising, like TBS, TNT, and Food Network, it can certainly hand over a huge slab of unprocessed market at any time. But an untargeted market is much less likely to produce positive results, and so, Warner is pulling out its A-game to ensure marketing works the best it can.
Stepping Up the Content, Too
This news comes at a good time, too. Warner just rolled out its “kids’ summer slate” for both Warner South Asia and Cartoon Network. The South Asia version will see newcomer “Jay Jagannath” come in, as well as some new fare from India, including “Aag Aur Pani Ka Badla,” the sequel to 2023’s “Aag Aur Pani Ki Takkar.”
Meanwhile, Cartoon Network will get the latest season of “My Hero Academia” and the latest in the “One Piece” saga, “One Piece: Land of Wano.” Add that all up, and it’s a lot of potentially fertile new ground for advertisers, who will need it considering overall macroeconomic conditions. That’s got some wondering if Warner isn’t undervalued, especially with Warner’s streaming service likely in the top three household services worldwide.
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 34.62% loss in its share price over the past year, the average WBD price target of $13.61 per share implies 64.97% upside potential.
