Revisiting My Investment in Warner Brothers Discovery

Last year, I announced that I was buying shares of Warner Brothers Discovery (Ticker: WBD). I did this because I concluded that they were trading at a valuation of less than what I believed that their assets were worth. I looked at the companies and intellectual property that they owned, and I concluded that they were worth more than the $35 billion they were, at that time, trading at.

Almost all of my investments have been doing really well this year. Warner Brothers Discovery, however, has not. They haven't done terribly. I'm only slightly down on my investment right now, but my WBD shares are not in the positive. WBD now trades at a $31 billion dollar valuation. 

WBD has lost a lot of money lately with certain media projects. The Flash, for instance, lost them an estimated $200 million dollars. Last year, the company created $33.82 billion in revenue but ended up losing $7.37 billion. As one can see from this, the company has a lot of struggles ahead of them. 

I do think that there is a lot to be bullish on with this company. They have a lot of valuable intellectual property that I think can be used to create a ton of cash (if used correctly). I think that their streaming service Max has the most growth potential out of all the streaming services. Max is actually one of the main reasons I bought the stock in the first place. I see so much potential for that platform.

I still believe in this stock, and I could see myself buying more shares of this company. I think it is going to be a tough road ahead for them, and I don't expect to make much of a return on this stock for the next few years. I do, however, think that this is a good long-term investment to make.

Join The CWT Stock Club! - patreon.com/financebycwt People ask me all the time, "What stocks should I invest in?". I can't tell people what they should buy, but what I can do is tell people what stocks I personally believe are a good buy and believe are worth researching. One should not take the stocks in this club as advice on what to buy but more as what stocks I believe people should research to decide for themselves if they should buy or not.