Warner Bros. Discovery: Taking Advantage Of Mr. Market’s Memory Lapses

  • Warner Bros. Discovery is facing challenges in meeting market expectations.
  • Management has been pushing back against unrealistic expectations and emphasizing the time needed for strategic decisions to show results.
  • The streaming sector is particularly prone to misinformation and unrealistic expectations, but management has made progress in turning huge losses into small profits.
  • A strategic change can take a few years to become apparent to shareholders and customers.
  • Deleveraging without causing a major impact to the business is a tightrope that this management successfully navigated even though many do not.
  • I am Long Player. I focus on Oil and Gas stocks. I’m a retired CPA, and have a MBA and MA. I lead the investing group Oil & Gas Value Research.

The attention span of Mr. Market is frequently limited. Oftentimes, the market does not give a large acquisition like the one that created Warner Bros. Discovery (NASDAQ:WBD) the time needed to “clean house” and optimize operations. As we get near the end