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Discovery, Inc. (DISCB)

NasdaqGS - NasdaqGS Real-time price. Currency in USD
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43.30-0.70 (-1.59%)
At close: 4:00PM EDT
43.80 +0.50 (+1.15%)
After hours: 05:12PM EDT
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  • L
    Leo
    Discovery 3rd Quarter Results will be released on Wed 3rd Nov at 7am ET, followed by an Earnings Call at 8am ET.In the 2 weeks before the 2nd Quarter Results were released on 3rd Aug, DISCK spiked up 19.25% from its then yearly low, as short sellers covered their positions. The DISCA gain was 15.96%.I expect a similar spike in the coming days, with DISCK possibly peaking above #$%$28.https://ir.corporate.discovery.com/news-and-events/financial-news/default.aspx
  • S
    SeanE
    T can't do anything right. Even when they have good news, they present it on a down day and mess it up. HBOmax added a NET of 2M subs. Why can't they highlight the facts. It was a great quarter because they lost several million HBOmax subs because of the expired Amazon contract. So they actually added over 4M new subs, but lost 2M for contractual reasons. That contract was a one time event.
    If this was any other company, the stock would go up because they added the same number of new subs as Netflix (which is up 5% today). But T is a disaster and they have amateurs working in investor relations.
    You have to talk with people and explain what you're doing and why. Then people understand if the news is good or bad.
  • S
    Steve
    I once sold a huge postion in FX that shorted the Euro at $1.58. If I closed by computer and walked away for a year I would have made 5 million on a simple 30K bet. But instead I watched it every hour and sold after a nice gain, but not a "retirement on a beach" gain. I have learned my lesson after that. When I pick a stock I like, I buy it and wait for my catalyst and never look at the profit or loss. I never look at my total in my account either and it seems to go up every year. The key for Discovery is to have the patience to wait for the merger. By Dec 31, 2022, it will be up close to 2x. That's worth being down another 10% over the next 6 months while I wait. Although, it seems hard to believe the stock will dip to $22.50. But if it does, I can sell all my other stocks and buy more knowing that my whole portfolio will double by end of 2022. This is Warner Media and not some money losing tech stock. Over time, Warner Media will do fine and that $50B in future revenue will bring in buyers. Nobody wants to touch it because it's tied to T, but once it's free then this bird will fly. Between Dune and the Matrix 4, there should be positive sentiment for the future. (but we need to be free of T)
  • S
    SeanE
    DISC suffers from the impatient investor discount. Once upon a time a 2x gain in 15 months would be awesome, but now nobody wants to wait 15 months for 2x when they get 2x in one day from an option on a stock like Tesla. Volatility is king and every wants it.
    But I believe DISC is a steal at this price when you consider that they are swallowing a Whale and John Malone once again got a steal of a price. With nothing more than a small little media company as collateral he got 30% of Warner Media. It makes sense as Warner gets the international distribution it needs to grow to 200M subs in the next few years and DISC gets big real fast.
    I think it's obvious from his past deal that following John Malone is the quickest way to retire rich.
  • L
    Leo
    Discovery has 3 share classes with different voting rights:
    DISCB 10 votes
    DISCA 1 vote
    DISCK 0 votes

    All 3 share classes will convert on an equal basis to shares in Warner Bros. Discovery when the merger with AT&T's WarnerMedia assets completes next summer. Buy whichever share class is cheapest, which is currently DISCK.

    Please vote this post up, so newcomers will see it. :)
  • S
    Steve
    One important point about the merger, Warner wants Discovery for it's international network and that's why they are doing the deal. Discovery has 200 million international viewers and HBO wants to leverage that network. At this time, I love owning a company with a market cap of less than $55B and a lot of potential. There's a reason Netflix is worth $300B, so I expect better numbers from Netflix and they delivered. But they should deliver with a 66:1 PE and that giant market cap.
    But going forward, can Netflix keep adding users at that rate. They have 220M households. That is a billion people total. Maybe Netflix can add another 220M users, but with a a current $300B market cap, they would be over valued with 440M users and only 50B in gross revenue. (Warner-Disc is projected to already have $50B in revenue by their first full year of 2023). I'm not sure how many users are possible, but when you get to 440M households and 2B people, you maybe hitting the limit of how many humans will pay for Netflix. So would you rather own a company at $55B market cap merging with Discovery and their international network or buy the giant company that is already priced at $300B.
    I like Warner-Discovery for it's potential and because I believe that inflation is running rampant with big minimum wage increases and so all entertainment will benefit. When you make $10/hr maybe you can afford 1 to 2 streaming services, but at $15/hr you can afford 3 or 4. Maybe Netflix keeps growing quickly, but it's not a zero sum game. People love their shows and they can afford multiple streaming services. My crystal ball sees TV entertainment replacing travel dollars and those previous dollars for travel will now go to streaming. Why travel to Europe when I can watch Discovery's travel show and avoid the travel headaches.
  • p
    paul
    Management’s next investor presentation: we are a premier value destruction company. Not only are we successful in the slow steady daily erosion of shareholder value through sophisticated operating practices, but we also undertake targeted and rapid decrements in value through choice mergers. These mergers are constructed in such a way that, despite initial sharp increases in shareholder value, once the mergers are better understood by the investing public - normally about 2 days, prices plummet below the prevailing, pre-merger, share price. We pride ourselves in a deep bench of management expertise that enables us to prevail in our ongoing objective of shareholder destruction even when confronted with strong advances in market indices, be it the Dow, the S&P, Nasdaq composite, or Russell 2000. This negative correlation to the overall market helps ensure that investors in the company have below-market volatility in their returns, thereby enhancing the attractiveness of their individual portfolios relative to all other investors who only invest in positive-return companies. We look forward to investors increasing the proportion of their portfolios in the company’s shares (DISCK, DISCA and DISCB, i.e., three share types because we thought it cool and couldn’t figure out which one we liked most), particularly through periodic rebalancing of their portfolios from high-positive return investments, whose values will no doubt now exceed portfolio limits, into the aforementioned shares of the company, which we will continue to mismanage to superior effect.
  • J
    J.C.
    Will Discovery be able to turn around CNN and turn it back into a relevant, unbiased, and credible news channel like it used to be back 20 to 40 years ago? I can't believe their viewing audience is now down to around 800,000, and that so many people refer to it as "fake news" CNN used to be my favorite news channel many years ago when Ted Turner controlled it. Now it's just become a propaganda outlet for the Democratic party with 24/7 opinionated content.
  • m
    mike
    Warnermedia earnings tomorrow at 7am when t reports.
  • J
    Joe
    Per yahoo finance...Schall law firm investigating disca
  • D
    David
    Last 5 days SPY has rallied from 432 to 450 and DISCA is down. Wow.
  • D
    Dave
    Assuming 2023 estimates of EBITA of $14B and FCF of $8.4B are close. I think growth at ~10 percent YOY is reasonable + debt lowered to 3x EBITA + Synergies savings + EBITA expansion to 12-14x gets you to a price target >$80 by 2025. The price is currently $24.50. Also, Food for thought, if the price of a company goes down but the fundamentals and future prospects improve, that is what I call a buying opportunity. GLTA longs!
  • l
    lifeisgoodasyoumakeit
    Unbiased news is news any other type of news is opinions too many news stations are full of opinions and have to find news to help their ratings 24/7 maybe things are better than we realize because there’s not not enough bad news to supply the media 24/7
  • d
    dreessen
    Of all the stock advice services I have used, I find (http://Thetraderguide.com) to be one of the absolute best! Their advice is well researched, helpful, and up to date. I don’t know how I ever went about day trading without reading their newsletter first!
  • J
    Jim
    Current Fair Value per Share = EV (enterprise value) - Debt ÷ outstanding shares = 30B - 12B ÷ 506 mil = $35. share undervalued by $10.
  • S
    SeanE
    Given the fact that DISC is 29% of the new company and has a market cap of 13B means that the NewCo company now has an implied market cap of 44B. That is Time Warner combined with Discovery and yet the market cap is now only 44B. I am buying every week and happy to do so. I hope it keeps dropping as my outlook is 3 yrs, not 2 months. I also buy when things are on-sale at the food market, so why not the "stock" market.
    if Warner was already on it's own the company would have a market cap over 100B, so I'm content to wait and see if it can get to full value. BTW - if HBO was for sale, does anyone believe the price would be less than 50B for just HBO. That is HBO without any other part of either company. There are tiny nobody companies with zero profits that are worth more than 50B.
    ATT and their horrific track record are still dragging this down, but that is the point of the spin-off - get away from T and be on it's own. Once it's away from T, then the value will rise as their is no T baggage to drag it down. But that is 9 months away and nobody thinks more than 2 months ahead at this point.
  • C
    Clay
    Just picked up some at 24.88. Should go back up to $29 in short term.
  • J
    Jan
    good quote from Peter Lynch:"just because the stock price goes down doesnt mean you're wrong, just because it goes up doesnt mean youre right." dont make a decision based on price movements only.
  • V
    Vad
    All I can say those shorts are extremely powerful.
    Since the deal disca lost about 5-7 bln and T lost about 40-50 bln in value
  • j
    j
    i ammgoing to venture and say that disca combo with t holding this back