Media and entertainment conglomerate Warner Bros. Discovery (NASDAQ:WBD) is introducing a 24-hour live news streaming service, CNN Max, to its Max streaming platform. This strategic move aims to keep users engaged on the platform for an extended period and attract younger viewers who prefer digital streaming over traditional cable.
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The news service is set to debut in the United States on September 27 and will be offered to Max subscribers at no additional cost.
The CNN Max news service will not only provide access to the network’s global reporting resources but also offer new original content. It will include shows like “CNN Newsroom with Jim Acosta, Rahel Solomon, Amara Walker, and Fredricka Whitfield” and “CNN Newsroom with Jim Sciutto.” Furthermore, WBD intends to capitalize on the service by providing coverage of breaking news with top analysis as part of this offering.
It is worth mentioning that WBD had previously faced failure with the CNN+ streaming service. The service was launched in March 2022 and had to be shut down weeks later. Even though the company charged a monthly fee of $5.99, the CNN+ streaming service fell short of delivering sufficient content to subscribers, including access to CNN’s most prominent offerings.
What is the Forecast for WBD Stock?
The company’s aggressive cost-control measures, Barbie’s success jackpot, and efforts to differentiate offerings from competitors bode well for long-term growth. However, analysts remain cautiously optimistic about the stock due to its huge debt load of $47.8 billion as of June 30, 2023.
On TipRanks, WBD stock has a Moderate Buy consensus rating based on seven Buy and three Hold. The average stock price target of $20.88 implies 64.4% upside potential. The stock has gained about 15% over the past three months.
Investors looking for the most accurate and profitable analyst covering WBD stock could follow analyst Barton Crockett from Rosenblatt Securities. If one were to replicate the analyst’s trades on the stock and hold each position for one year, about 75% of the transactions would result in a profit, with an average return of 10.8%.
