Should I Buy WBD? WBD 2026 Analysis

Should You Buy Warner Bros Discovery Inc (WBD) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

27.360

1 Day change

2.24%

52 Week Range

30.000

Analysis Updated At

2026/01/30

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Buy now for an event-driven, short-term opportunity. WBD is trading near key support (~27.2–27.6) and looks oversold short-term, while options positioning is notably call-skewed and news flow includes a major potential catalyst (Netflix reportedly amending an all-cash ~$72B offer). Fundamentals are mixed-to-weak and insiders have been selling, but given the user’s impatience and the presence of a plausible near-term catalyst, the risk/reward favors taking the trade now rather than waiting.

Technical Analysis

Price/levels: Closed at 27.5, sitting right at support (S1 ~27.555; S2 ~27.206) and below the pivot (28.121), which keeps the immediate trend pressured. Momentum: MACD histogram is negative (-0.232) and expanding lower, confirming bearish momentum is still in control. RSI: RSI(6) at ~24 suggests short-term oversold conditions (despite the provided label), which often precedes bounces—especially when price is sitting on support. Moving averages: Converging MAs implies compression; a break back above the pivot (28.12) would be a near-term improvement with resistance next at 28.69 then 29.04.

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock recently.

Takeaway: Technically weak trend, but oversold-at-support setup supports a tactical buy if you want in immediately.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Both OI and volume put/call ratios are below 1 (0.65 and 0.39), showing call-side skew and generally bullish positioning. Activity/interest: Options volume is elevated (today vs 30-day avg ~223%), suggesting heightened speculation/positioning around news/catalysts. Volatility: 30D IV ~52% vs HV ~44.7% and IV percentile ~61.6 indicates options are priced relatively rich, consistent with event risk being priced in. Net read: Options market is leaning bullish and actively trading, supportive of a buy-biased stance right now.

Technical Summary

Sell

Buy

Positive Catalysts

- Event-driven upside: News reports that Netflix amended its bid for Warner Bros. Discovery to an all-cash offer of about $72B (potential M&A re-rating catalyst).
- Options market tone is bullish (low put/call ratios) with unusually high volume, consistent with traders positioning for upside.
- Analysts’ price targets have recently moved up into the ~$29–$30 range (implies upside from ~27.5 if the stock mean-reverts/re-rates).
- Short-term oversold technical condition near support increases odds of a bounce.

Neutral/Negative Catalysts

- Trend/momentum still bearish (MACD negative and worsening; price below pivot), so the chart can continue to leak lower if support breaks (next support ~27.2).
- Insider selling is flagged as increasing sharply (+326% over the last month), a negative near-term signal.
- Latest reported quarter shows revenue and earnings pressure (YoY declines and net loss), which can cap upside if M&A/speculation fades.
- Media/box office uncertainty and franchise reliance themes (industry headwinds) could weigh on sentiment outside of deal headlines.

Financial Performance

Latest quarter provided: 2025/Q3.

Revenue: $9.045B, down ~6.0% YoY (top-line contraction).
Net income: -$148M, worse YoY (loss widened materially).
EPS: -$0.06, worse YoY.
Gross margin: 34.74%, up ~18.3% YoY (a genuine positive—profitability on core economics improved even as revenue fell). Overall: Operational margins improved, but growth and bottom-line trend were weak in the latest quarter, so the fundamental case alone is not the reason to buy today; the setup is more catalyst/positioning-driven.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Price targets have been raised sharply into early 2026, but ratings remain mostly neutral/hold.

2026-01-28 UBS: PT raised to $30 (from $20), rating Neutral.
2025-12-18 Morgan Stanley: PT raised to $29 (from $15), rating Equal Weight.
2025-12-11 Spin-Off Research: Downgraded to Hold from Buy, PT $30.50.
2025-11-07 Bernstein: PT raised to $23.50, rating Market Perform. Wall Street pros: Higher PTs suggest improved expectations/re-rating potential; commentary implies momentum into 2026. Wall Street cons: The lack of Buy ratings (Neutral/Hold/Market Perform) signals pros see upside but remain unconvinced on risk-adjusted returns and execution/fundamental durability. Other flow checks: Hedge funds are reported neutral; no recent Congress trading data available.

14 Analyst Rating

Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

9 Hold

0 Sell

Moderate Buy

Current: 26.760

Low

14.75

Averages

24.98

High

Current: 26.760

Low

14.75

Averages

24.98

High

UBS

Neutral

maintain

$20 -> $30

AI Analysis

2026-01-28

Reason

UBS

Price Target

$20 -> $30

AI Analysis

2026-01-28

maintain

Neutral

Reason

UBS raised the firm's price target on Warner Bros. Discovery to $30 from $20 and keeps a Neutral rating on the shares.

Morgan Stanley

Equal Weight

maintain

$15 -> $29

2025-12-18

Reason

Morgan Stanley

Price Target

$15 -> $29

2025-12-18

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Warner Bros. Discovery to $29 from $15 and keeps an Equal Weight rating on the shares. The Media and Entertainment industry heads into 2026 with "solid fundamental momentum," says the analyst, who recommends stocks in the group that it believes are insulated from AI disruption, will benefit from demand for premium experiences, or have a differentiated earnings outlook.

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WBD Should I Buy

WBD Should I Buy

Should You Buy Warner Bros Discovery Inc (WBD) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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