Warner Bros. Discovery (WBD) Stock Hits 52-Week High, Then Gets a Sell Rating

TLDR

• Argus downgraded Warner Bros. Discovery (WBD) stock to Sell from Hold.
• WBD stock trades at $30.90, just under its 52-week high of $30.92.
• The gap between WBD’s stock price and Paramount Skydance’s $31 offer has nearly closed.
• Argus forecasts a 2026 loss of $0.90 per share, then a $0.07 profit in 2027.
• Streaming revenue grew 10%, but Networks and Studios earnings both declined.

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Argus downgraded Warner Bros. Discovery (WBD) stock to Sell from Hold on Monday. The call comes as the company’s merger with Paramount Skydance heads toward the finish line.

Warner Bros. Discovery, Inc., WBD

WBD stock trades at $30.90, just under its 52-week high of $30.92. That price sits right beneath Paramount’s $31 offer, leaving little room left to climb.

Analyst Joseph Bonner said a recent settlement of a multistate antitrust lawsuit cleared the way for the deal. He expects the merger to close soon.

The gap between WBD’s stock price and Paramount’s offer has narrowed sharply. Argus sees little upside left for anyone holding on now.

InvestingPro data flagged the stock as overvalued against its fair value estimate. Its RSI reading also points to overbought territory.

Earnings Outlook

Argus forecasts a 2026 GAAP loss of $0.90 per share for WBD. It expects that to flip to a $0.07 profit in 2027.

The firm projects long-term earnings growth of 6% a year. That number blends the company’s streaming gains with weakness elsewhere.

Streaming revenue rose 10% to $3.1 billion in the second quarter. Adjusted EBITDA for that segment jumped 63% to $512 million.

Networks adjusted EBITDA fell 5% to $1.45 billion. Studios EBITDA dropped 89% to just $96 million.

Merger Progress

Paramount Skydance is moving through the final steps of the takeover. Citigroup is set to begin meetings with loan investors to help fund it.

Paramount is also negotiating with California’s attorney general. It has floated a $1.5 billion investment in the state to help clear legal hurdles.

The FCC approved foreign investment in the $110 billion deal. Foreign investors won’t be allowed to hold voting stock, though.

Benchmark has kept a Hold rating on WBD stock through the talks. Not every analyst agrees the upside is fully gone.

Argus also flagged risks outside the merger itself. It pointed to a long decline in cable television and the loss of domestic NBA rights.

WBD stock has gained about 7% this year. That trails a 12% rise in the broader market over the same stretch.