AVOID Conviction3/5 Analysis quality55/100 Price target38.76 now
The analyst is hesitant to invest in Discovery despite its strong TV channels and upcoming merger with Warner Media. He expresses concern about the escalating content costs and slowing subscriber growth in the streaming wars, noting that Discovery's 22 million subscribers are not competitive with market leaders. While valuation is attractive, he prefers other streaming options.
“I got to tell you I'm hesitant to jump into any of these streaming stocks right now because we're seeing that content cost just balloon and eat away at profitability and subscriber growth is also slowing as people pick one or maybe two services max.”