10 Best Stocks Under $15 To Buy Now

7. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: 48

Share Price as of the close of September 27: $8.38

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is an American entertainment and mass media conglomerate headquartered in New York City. The company was formed in 2022 through a merger of WarnerMedia and Discovery, Inc., and is considered one of the world’s top distributors of content across film, television, gaming, and streaming.

Two years since its launch, the company has made steady progress during its transition phase but also faces several pressing challenges that are impeding its financial progress. During Q2 2024, the company reported a revenue of $9.7 billion, which was down 5% compared to the same period last year. Net loss for the quarter amounted to $9.9 billion, of which $9.1 billion was the result of a write-down in the value of its cable network.

According to Warner Bros. Discovery, Inc. (NASDAQ:WBD), the difference between market capitalization and book value, along with softness in the advertising market, and uncertainty around sports rights renewals, triggered the goodwill impairment. Distribution and network ad revenues also decreased during the quarter, by 8% and 9%, respectively, and were driven by a 9% decline in pay-TV subscribers as domestic affiliate rates increased.

However, there were also numerous positives during the quarter. Warner Bros. Discovery, Inc. (NASDAQ:WBD) noted substantial growth in its direct-to-consumer (D2C) business, fueled by the Olympic Games’ viewership in Europe. The segment added 3.6 million new subscribers in Q2, following the addition of 2 million subscribers during the first quarter of FY24. The company also witnessed double-digit growth in demand for sports coverage, most notably the NBA, NHL, March Madness, Major League Baseball, and the French Open.

TV series Hard Knocks and House of the Dragon also did incredibly well during the quarter. The company expects the momentum to continue with the premiere of the highly anticipated HBO series, The Penguin, in September. These factors coupled with encouraging trends in sports coverage have put Warner Bros. Discovery, Inc. (NASDAQ:WBD) on track to meet its target of generating $1 billion in EBITDA in 2025.

As a result, Street analysts have maintained a consensus Buy rating on the stock and anticipate a 34% upside in its share price. According to Insider Monkey’s database, 48 hedge funds held a stake in the company, as of Q2 2024, making Warner Bros. Discovery, Inc. (NASDAQ:WBD) one of the best stocks under $15 to buy now.