12 Best Streaming Service Stocks to Buy According to Analysts

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

Average Upside Potential: 25.7%

Number of Hedge Fund Holders: 49

Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media and entertainment company. The company has iconic brands and products including Discovery Channel, Max, discovery+, and CNN, among others. The company’s stock received an upgrade from “Neutral” to “Buy” by analysts at MoffettNathanson, with the price objective increasing from $9.00 to $13.00. The upgrade is backed by Warner Bros. Discovery, Inc. (NASDAQ:WBD)’s latest round of affiliate fee renewals, providing a level of financial stability. Furthermore, healthy momentum in the Max streaming service and reduced headwinds in the Studio segment continue to provide a positive long-term outlook.

The firm believes that Warner Bros. Discovery, Inc. (NASDAQ:WBD) remains well-positioned to capitalize on its current stability and might participate in shaping the broader media industry’s consolidation landscape. The company’s streaming strategy, which revolves around its Max platform, remains a key component of its future growth plans. Its streaming profitability has been showcasing signs of acceleration, which remains critical considering the intense competition in the broader streaming market. Warner Bros. Discovery, Inc. (NASDAQ:WBD)’s international expansion efforts, mainly in Europe and Latin America, are expected to act as drivers for future growth in the DTC segment.

In Q3 2024, DTC’s adjusted EBITDA came in at $289 million, implying an increase of $178 million as compared to the prior year. In total, Max delivered 7.2 million net subscriber adds, which was the strongest quarterly gain ever since the launch of the platform.