Warner Bros. Discovery Stock Up After Earnings, Disney Plus Bundle Deal
Warner Bros. Discovery shares are higher Thursday after the media giant disclosed Q1 earnings and a bundle deal with Disney. Here's what you need to know.


Warner Bros. Discovery (WBD) stock is higher in afternoon trading Thursday as investors parse the company's first-quarter earnings report and news of a streaming bundle offer with Walt Disney (DIS).
In the three months ended March 31, Warner Bros. Discovery's revenue decreased 7% year-over-year to $9.96 billion. Its per-share loss of 40 cents from a loss of 44 cents in the year-ago period.
Free cash flow (FCF), which is the cash remaining after a company has paid its expenses, interest on debt, taxes and long-term investments to grow its business, showed a major improvement, coming in at positive $390 million compared with negative $930 million a year ago.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We are pleased with our progress in the first quarter as evidenced by strong results in important KPIs," Warner Bros. Discovery CEO David Zaslav said in a statement. “Importantly, we once again delivered strong free cash flow, even in our seasonally weakest FCF quarter."
The Q1 results came up short of analysts' expectations. According to CNBC, Wall Street was expecting revenue of $10.2 billion and a loss of 24 cents per share.
The bright spot for Warner Bros. Discovery was its Max streaming unit, which saw revenues increase "modestly" to about $2.5 billion, driven by a 69.9% increase in advertising revenue to $175 million. The unit added 2 million subscribers from the prior quarter to bring its total to 99.6 million.
"We will soon be rolling out Max to 29 countries across Europe, and the content lineup for Max over the coming year is one of our strongest ever," Zaslav said. "Warner Bros. Pictures also had a strong start to the year as the first studio to reach $1 billion in both overseas and global box office, and they have a great slate in the works."
Warner Bros. Discovery and Disney unveil streaming bundle
Another potential growth driver for Warner Bros. Discovery is the new streaming bundle offer that includes Max and Disney's Disney Plus and Hulu platforms.
The deal was announced Wednesday, May 8, and will be available in ad-supported and ad-free plans.
The bundle creates the "opportunity to drive incremental subscriber growth," said Zaslov in today's earnings call, adding that "this product will help increase retention and lower churn, and thus support higher customer lifetime values." He added that the bundle will be available this summer.
Where does WBD stock stand with analysts?
Warner Bros. Discovery shares have had a rough 2024, down 30% so far. Still, analysts are bullish on the communication services stock.
According to S&P Global Market Intelligence, the consensus analyst target price for WBD stock is $13.01, representing implied upside of more than 60% to current levels. Meanwhile, the consensus recommendation is Buy.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
119 JCPenney Stores Just Sold — Here’s What Shoppers Should Know
The $947 million JCPenney deal hints at bigger retail and real estate shifts.
-
Top Four Retirement Withdrawal Strategies to Maximize Your Savings
These retirement withdrawal strategies avoid tax and stock market pitfalls that can eat into your savings.
-
Should You Buy These ETFs Before the Fed Cuts Rates?
The Fed is likely to lower interest rates this fall, and tactical investors may want to look closer at these ETFs before rate cuts resume.
-
How Much Income Will an Indexed Annuity Get You? An Annuities Expert Lays Out the Numbers
Guaranteed lifetime income sounds great, but how much will it be? Several factors determine your future payout on indexed annuities with an income rider.
-
Financial Fact vs Fiction: Why Inflation Is Lower, But Prices Are Not
Do you think bonds protect you from stock losses? Are you confident your assets will go to your intended heirs if all you have is a will? Think again — and read on for other myths that could be leading you astray.
-
I'm a Personal Finance Expert: Here's the Truth About Using AI to Plan Your Retirement
AI can be a useful tool, but it often gets important financial information wrong. It also can't emulate the empathy, judgment and personal connection you can get with a human being.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This Year
Looking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the Fed
A lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth Manager
Navigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.