Warner Bros. Discovery Turnaround Ahead of Schedule But Market Impatient
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Warner Bros. Discovery management planned for a long turnaround but the market wants immediate results, leading to stock underperformance.
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Management is ahead of schedule on goals like streaming profitability, debt reduction, and cash flow growth, but the market focuses on missteps.
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If management meets 2025 streaming EBITDA goal and grows overall cash flow 20% yearly, stock could triple from current low valuation.
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Biggest risk is management inaction, but current actions show the opposite - fast progress on multiple fronts to transform the company.
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For patient investors, negative market sentiment allows buying a quality company and assets with significant turnaround potential at a bargain valuation.