Live sports are a major part of streaming television operations, and this is no exception for entertainment giant Warner Bros. Discovery (WBD). In aid of that, Warner is keeping its partnership with Extreme H racing going on several platforms, offering up the high-end and oddly green racing action for interested viewers. This was good enough for investors, who gave Warner shares a fractional boost in the closing minutes of Thursday’s trading.
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Extreme H is like Extreme E, but with one key difference: the H stands for “hydrogen,” and it describes what the vehicles in question are powered by. Extreme H is set to launch later this year, and when it does, various Warner properties will be ready to cover broadcast duties therein.
Not only will Extreme H be on Eurosport, but it will also be handled by TNT Sports in the United Kingdom as well as Ireland. Further, HBO Max and Discovery+ will handle streaming duties throughout Europe to present the coverage. Warner has been working with Extreme E since its starting season back in 2021, and though there are some reports that say Extreme E might not be a thing much longer, all reports suggest that Warner will be in its corner until there is no corner to be in.
A Vote of No Confidence?
But Warner is also coming off of a significant black eye to its overall operations, with a major sale from the owners of Conde Nast, the Newhouse family. Said owners—who also owned a hefty bloc of Warner shares—sold off 100 million shares of Warner Bros. Discovery, which at the time sent Warner shares down about 4%, reports noted.
While the reasons for the sale were not because the Newhouses had a problem with Warner per se, the impact was still substantial. Apparently, according to a 13D filing, the Newhouses were looking for “…financial flexibility to support the Reporting Persons’ ongoing estate planning, its investment program, and for other general corporate purposes.” Though it is easy enough to wonder if, perhaps, the Newhouses thought that Warner’s plan to split off its linear television operations was not exactly the best plan.
Is WBD Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on 10 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 54.23% rally in its share price over the past year, the average WBD price target of $12.54 per share implies 11.67% upside potential.
