HBO Max, a streaming platform owned by Warner Bros. Discovery (NASDAQ:WBD) has raised the monthly cost of its ad-free plan by 7% to $15.99 in the U.S. The price change is expected to help the company improve programming and the customer experience.
This marks the first-ever price hike for HBO Max since its launch in May 2020. The increase in price comes ahead of HBO Max’s merger with Discovery+ into a single platform. The deal is expected to close this spring.
Over the past few months, Warner Bros. Discovery has been taking several cost-control measures, including canceling shows and laying off employees. With these efforts, the company aims to support its bottom line, which has been marred by falling demand for digital advertising and streaming services.
The company is scheduled to release its fourth-quarter earnings on February 9.
Should You Buy or Sell WBD Stock?
Wall Street is cautiously optimistic about WBD stock. Currently, analyst consensus is a Moderate Buy based on six buys, five Holds, and one Sell. The stock’s average price target of $17.94 implies 36.43% upside potential. Shares of the company have gained 5.2% over the past three months.
