Why Warner Bros. Discovery (WBD) Is Rallying Today

Warner Bros. Discovery (WBD) is jumping 10% after the company predicted yesterday that its “strong (streaming) subscriber growth (would) continue throughout 2025.” WBD added that its global streaming subscriber base could reach “at least 150 million subscribers by 2026.”

The news overshadowed WBD’s weaker-than-expected fourth quarter financial results which it also reported yesterday.

A person at home displaying a vibrant media streaming interface, being rendered on a large flatscreen television.

WBD Anticipates Strong Streaming Momentum

“We expect strong (streaming) subscriber growth to continue throughout 2025. And we now have a clear path to reach at least 150 million global subscribers by the end of 2026, with corresponding strong (streaming) revenue and adjusted EBITDA growth,” the company reported in a statement.

WBD also anticipates that it will be able to launch its Max streaming service in a number of new overseas markets, including Australia, Germany, and the UK, in 2026.

WBD’s Q4 Results Miss the Average Estimates

The company’s Q4 revenue fell 2.5% versus the same period a year earlier to $10 billion, versus analysts’ average outlook of $10.14 billion. It generated a Q4 loss per share of 20 cents, compared with the mean estimate of earnings per share of 3 cents.

On the positive side, its Q4 EBITDA, excluding certain items, climbed 11% versus the same period a year earlier to $2.7 billion.

While we acknowledge the potential of WBD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WBD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.