The Warner Bros. Discovery, Inc. (WBD), headquartered in New York, operates as a worldwide media and entertainment company. With a market capitalization of $70.8 billion, the company offers a comprehensive portfolio of content, brands and franchises in television, film, streaming and gaming.

Shares of this leading global media and entertainment company have substantially outperformed the broader market over the past year. WBD has gained 175.5% over that time period, while the broader S&P 500 ($SPX) is up nearly 13.9%. However, in 2026, WBD shares are down 2%, compared to the SPX’s 1.5% rise since the previous year.

Expanding further, WBD’s outperformance is also evident when compared to the Invesco Leisure and Entertainment ETF ( PEJ ). The exchange-traded fund has gained about 12.4% over the past year. However, the ETF’s 1% drop on a YTD basis outpaces the stock’s losses over the same time period.

The shares of Warner Bros. Discovery is outperforming due to a revised, all-cash takeover offer from Netflix, Inc. (NFLX) on Jan. 20. The $82.7 billion deal, which includes WBD’s studio and streaming assets, is intended to provide greater certainty of value and expedite a shareholder vote.

On November 6, 2025, WBD shares closed up 1.5% after reporting its third quarter results. Its loss of $0.06 per share missed Wall Street expectations of $0.04 per share. The company’s revenue was $9 billion, below Wall Street forecasts of $9.2 billion.

For the current fiscal year ending December 2025, analysts expect WBD’s EPS to grow 114.7% to $0.68 on a diluted basis. The company’s history of earnings surprises is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on one other occasion.

Among the 24 analysts covering WBD stock, the consensus is a “moderate buy.” It is based on seven “Strong Buy”, two “Moderate Buy” and 15 “Hold” ratings.

This setup is less bullish than a month ago, with eight analysts suggesting a “Strong Buy.”

On January 15, Benchmark maintained a “Buy” rating on WBD and raised the price target to $32, implying a potential upside of 13.3% from current levels.