Should I buy Warner Bros. Discovery stock in 2025? NZ Insights & Analysis

What is Warner Bros. Discovery?

How much is the Warner Bros. Discovery stock?

The price of Warner Bros. Discovery stock is rising this week. Currently trading at $10.04 USD, the stock gained 0.20% over the past 24 hours and has surged by 31.07% over the week, bringing market capitalisation to $24.84 billion. Average daily trading volume stands at 43.53 million shares (3-month average), with no P/E ratio reported as the company remains unprofitable and no dividend yield offered. The stock's beta is 1.47, signalling higher volatility compared to the overall market. With rapid price swings and an active international footprint, Warner Bros. Discovery may appeal to NZ investors seeking exposure to the dynamic global media sector.

Our complete analysis of the Warner Bros. Discovery stock

Having thoroughly reviewed Warner Bros. Discovery’s (NASDAQ: WBD) latest financial results alongside the stock’s price trajectory over the last three years, our analysis integrates robust financial ratios, technical signals, market sentiment, and relative sector positioning using proprietary quantitative models. This multifaceted approach lets us capture both the micro- and macro-environment shaping WBD’s outlook. So, why might Warner Bros. Discovery stock once again become a strategic entry point into the dynamic global media and entertainment sector in 2025?

Recent Performance and Market Context

Warner Bros. Discovery’s share price has demonstrated remarkable resilience and renewed momentum. As of 30 May 2025, WBD trades at $10.04, marking an impressive +31% annual performance and a robust +31% gain in just the past week. Despite a brief -4.2% dip over the previous six months—reflective of sector volatility and broader market concerns over debt and streaming economics—the stock quickly rebounded, outperforming both sector peers and the S&P 500 over shorter timeframes.

Positive events underpinning this advance include:

• Q1 2025 streaming growth: 5.3 million net new streaming subscribers grew the global total to 122.3 million, signposting accelerating traction in the all-important digital content arena.
• Debt reduction: WBD repaid $2.2 billion in debt, underlining a coordinated effort to de-risk its balance sheet.
• Structural transformation: The December 2024 announcement of the new two-division structure foreshadows operational agility and heightened focus, often precursors to value unlocking events.

Macroeconomically, the global media and entertainment sector is benefitting from stabilisation in US rate expectations, continued consumer appetite for premium streaming, and increasing consolidation prospects—particularly as political change in the US ignites talk of regulatory leniency and market-driven mergers. For New Zealand investors seeking tech-driven, globally exposed growth, Warner Bros. Discovery is aligning itself with secular trends that are reshaping the entertainment landscape.

Technical Analysis

The technical picture for WBD is highly constructive. Current momentum indicators and moving averages reflect a market environment that is increasingly characterised by accumulation and bullish sentiment:

• Relative Strength Index (RSI, 14 days): 66.72, nudging towards overbought levels but still neutral—often a prelude to further advances when accompanied by bullish news flow.
• MACD: 0.15, which could be interpreted as a mild short-term consolidation setup; however, the overall pattern is not inconsistent with continued advances—particularly against the backdrop of strong moving averages.
• Moving Averages:
• 20-day: $8.99 (buy signal)
• 50-day: $9.16 (buy signal)
• 100-day: $9.78 (buy signal)
• 200-day: $9.26 (buy signal)

With the stock comfortably above its 200-day average and strong support observed around $9.75, the charts suggest significant technical backing. The “Strong Buy” technical consensus, highlighted by 15 independent bullish signals, further reinforces WBD’s short- and medium-term positive structure.

Immediate resistances stand at $12.70, offering clear near-term upside targets for momentum traders and investors looking to capture the next leg of growth.

Fundamental Analysis

Delving into WBD’s fundamentals reveals a compelling narrative of transformation, rejuvenation, and strategic adaptation:

• Revenue and Profitability: Q1 2025 revenues reached $9.0 billion—a 9% decrease year-on-year, primarily reflecting cyclical headwinds in linear TV—but more importantly, streaming EBITDA hit $339 million for the quarter, up sharply and pointing to a full-year target of $1.3 billion (+85% versus 2024).
• Earnings Quality: The Q1 net loss of $0.5 billion yielded EPS of -$0.18—a figure that, although negative, surpassed consensus by a small margin and underscores systematic improvement. The continued trend of exceeding analyst expectations could act as a sentiment lever for future quarters.
• Valuation: While Warner Bros. Discovery currently trades at a price/earnings ratio that is undefined due to recent losses, its price/sales multiple remains very attractive relative to both legacy media incumbents and high-growth streaming peers. The current market capitalisation of $24.84 billion gives the stock plenty of runway should streaming profitability and asset restructuring continue at pace.
• Strategic Strengths: WBD’s differentiated premium content library (HBO, CNN, Discovery, Warner Bros.) and enduring portfolio brands form a uniquely durable competitive moat. Expansion into markets such as Australia and a presence in over 220 countries fuel a globally diversified revenue base—particularly relevant given the high global consumption of branded content in New Zealand and the Asia-Pacific region.

Volume and Liquidity

One of WBD’s less discussed yet crucial strengths lies in its exceptional liquidity and trading volume:

• Trading volume: Averaging 43.53 million shares daily (over the last 65 trading days), WBD is among the most liquid mid-cap media equities worldwide.
• Float Structure: The ample float supports dynamic price discovery while absorbing large institutional flows—attributes highly sought after by professional and retail investors alike.

Sustained volume at recent price levels often denotes broad market confidence, suggesting that investors of all stripes are taking renewed interest without fear of illiquidity or outsized bid-ask spreads.

Catalysts and Positive Outlook

Several high-conviction catalysts underpin the current and future outlook for Warner Bros. Discovery:

• Streaming Profitability: With Q1 2025 EBITDA from streaming at $339 million, and full-year 2025 guidance implying $1.3 billion (an 85% annual increase), this vector dramatically changes the earnings trajectory.
• Subscriber Growth: The stated goal of 150 million global subscribers by end-2025, if achieved, would further transform margin structure and command a multi-year rerating by the market.
• Divisional Spin-off: The ongoing strategic review may result in a company split, potentially unlocking hidden value as media and streaming are separately valued by investors.
• Sector Consolidation: Political shifts and newly favourable regulatory environments may speed up sector mergers (often value-accretive), with WBD well placed either as acquirer or a strategically attractive target.
• ESG Initiatives and International Expansion: Recent launches (e.g., Max in Australia) and a credible sustainability programme improve both consumer and institutional appeal, particularly to funds with strict ESG mandates.

Investment Strategies

The current environment offers tactical and strategic positioning opportunities for different investment horizons:

• Short-term:
• The technical rebound from support at $9.75, reinforced by recent bullish signals, provides an opportunity for swing trading within the well-defined range up to the $12.70 resistance.
• For active traders, a break above $12.70 could trigger the next bullish technical leg.
• Medium-term:
• The run-up to pivotal catalysts such as quarterly results, subscriber announcements, or restructuring news creates an ideal window for position building.
• The analyst median price target of $13.30 (a 32% premium to current levels) gives supportive context for holding positions over several months.
• Long-term:
• Investors with multi-year views can benefit from WBD’s evolving business model, digital monetisation potential, and embedded content value.
• Entry at current levels, close to historical and technical lows, may maximise risk-adjusted returns when considering the cyclical bottoming of traditional media and the secular rise of streaming.

Across all horizons, prudent portfolio sizing and risk management are warranted, but the favourable blend of momentum, valuation, and transformation supports a positive outlook.

Is it the Right Time to Buy Warner Bros. Discovery?

Warner Bros. Discovery stands at the intersection of profound sector change, operational transformation, and emerging growth in streaming. Key strengths justifying renewed attention include:

• Robust streaming subscriber and revenue expansion, supported by a globally recognised content portfolio.
• Management’s clear commitment to debt reduction and strategic balance sheet improvement—a key risk mitigant.
• Technical and momentum factors pointing to potential further advances and strong support at recent lows.
• Multiple near-term catalysts, from company restructuring to sector consolidation and improved regulatory tailwinds.
• Attractive risk/reward fundamentals at current price levels, validated by analyst consensus and institutional market activity.

For New Zealand investors positioned to benefit from the structural evolution of digital media, now appears to be an exceptional moment to evaluate or revisit Warner Bros. Discovery as a portfolio holding. While a degree of operational risk, particularly regarding leverage and legacy TV businesses, remains, these are increasingly being offset by execution on streaming profitability and the prospect of corporate catalysts.

In summary, Warner Bros. Discovery seems poised for a new phase of growth, offering a highly attractive entry for investors seeking exposure to a rebounding, innovative, and globally scaled media titan. The confluence of strong technical momentum, improved fundamentals, and the likelihood of significant positive catalysts suggests that this stock’s upside potential should feature prominently in any serious portfolio review for 2025.

For those monitoring the world’s media transformation, Warner Bros. Discovery truly represents a timely and promising opportunity as its strategic pivot continues to accelerate and deliver value to shareholders.

How to buy Warner Bros. Discovery stock in New Zealand?

Buying Warner Bros. Discovery shares online is both straightforward and secure for New Zealand investors, provided you use a regulated broker. You have two main options: spot buying, where you acquire actual shares, and CFD trading, which allows you to speculate on price movements with leverage. Both methods are easily accessible through established share trading platforms. Each approach comes with its own fee structure and risk profile, so it's important to choose what best matches your goals. To help you get started, we offer a comprehensive broker comparison further down this page.

Spot Buying

Spot buying means purchasing Warner Bros. Discovery shares directly—becoming a partial owner of the company. With most NZ-friendly brokers, you’ll pay a fixed commission per order, usually ranging from NZ$3 to NZ$15, depending on the platform.

Example

Suppose Warner Bros. Discovery shares are trading at US$10.04 (approx. NZ$16.30, using a 0.62 exchange rate). With NZ$1,000 (roughly US$615), you can buy about 61 shares (US$10.04 × 61 = US$612.44, plus an NZ$5 brokerage fee).

Gain scenario:
If the share price rises by 10%, your stake is now worth NZ$1,100.
Result: +NZ$100 gross gain, or +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Warner Bros. Discovery share price movements without actually owning the shares. With CFDs, you can use leverage (for example, 5x) to amplify your exposure, but this also increases risk. Instead of a fixed commission, fees include the spread (the broker’s markup between buy/sell prices) and overnight financing if you hold positions for more than a day.

Example

You open a CFD position on Warner Bros. Discovery with NZ$1,000 and apply 5x leverage, giving you NZ$5,000 in market exposure.

Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +NZ$400 gain on a NZ$1,000 margin (excluding fees).

Final Advice

Before investing, always compare the fees, tradable markets, and support offered by different brokers. Your best choice depends on whether you prefer straightforward ownership (spot), or higher-risk, higher-reward speculation (CFDs). Ready to take the next step? Review our broker comparison below to find the platform that suits your strategy and needs.

Our 7 tips for buying Warner Bros. Discovery stock

The latest news about Warner Bros. Discovery

Warner Bros. Discovery stock has surged 31% over the past week, reflecting renewed investor optimism. This robust performance—among the strongest in the communications sector—follows the release of Q1 2025 results that exceeded consensus EPS estimates, supporting positive market sentiment. For New Zealand-based market watchers, the rally is significant as it demonstrates heightened global interest and capital inflows into major US-listed media companies with a broad international footprint and product reach, including frequent launches and distribution deals in the Australia/New Zealand region.

The company reported a record gain of 5.3 million new streaming subscribers globally in Q1 2025, driving its total to 122.3 million. A substantial portion of this growth came from international markets, notably following the recent launch of the Max platform in Australia. As the New Zealand media market is closely aligned with Australia in terms of content supply, channel partnerships, and consumer trends, this positive momentum suggests further market penetration of WBD’s brands and IP—including HBO and Discovery—across Oceania and provides constructive signals for the company’s competitive positioning in the region.

Warner Bros. Discovery executed a $2.2 billion debt repayment in the latest quarter, strengthening its financial profile. This proactive deleveraging is viewed favorably by analysts, especially given the company’s previously elevated leverage. For New Zealand institutional investors and fund managers mandated to monitor credit risk and balance sheet health, WBD’s commitment to reducing gross debt is a concrete step towards financial resilience, despite the company recently facing a credit downgrade. This development tempers risk and could enhance long-term regional investment allocations.

The technical outlook is notably bullish, with “Strong Buy” signals across major moving averages and consensus analyst price targets offering a 32% upside. The stock’s technical profile is underpinned by bullish momentum indicators (e.g., 20/50/100/200-day moving averages above current price) and heightened trading volumes. Local investors in New Zealand, where US-listed equities form a foundational element of diversified portfolios, are likely to note that WBD is increasingly regarded as a tactical growth play in global media—especially attractive given the current lack of dividend-paying options in the sector.

Strategic expansion and innovation, highlighted by Max’s rollout and premium content portfolio, reinforce Warner Bros. Discovery’s global brand strength and regional impact. The integration of high-value franchises and ongoing investments in streaming platforms underpin WBD’s ability to capture market share in New Zealand via content partnerships, licensing, and direct-to-consumer models. The continued evolution of the entertainment market, including possible corporate restructuring to unlock shareholder value, signals ongoing potential for upside and market relevance for NZ-based stakeholders monitoring global media trends.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.