In June 2025, Warner Brothers Discovery (WBD) announced plans separate companies with one company focusing on growing streaming, while the other dedicates to cable and global networks. This announcement comes on the back of strategic restructuring designed to sharpen each company’s focus and improve operations. Following this announcement, shares of WBD increased 11 percent at the market open and pushed 13 percent higher during the day. The immediate gain is a signal of market confidence that the split will unlock value. In this article, we will take a closer look at WBD from a fundamental and technical approach, and provide a market outlook from our team here at Sigmanomics.
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The split aims to enhance operational focus and address the company’s leverage, as the parent company holds $34 billion in debt. Adding onto financial performance, for the trailing twelve-month period, WBD reported revenue per share of $15.62 with net income attributing -10.8 billion. This resulted to EPS of -$4.40, with gross profit standing at $16.6 billion.
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WBD Technical Analysis and Market Outlook
Among 19 analysts covering WBD, the average price target is $13.63, with low and high estimates of $9.00 and $24.00, respectively. Bank of America analysts maintain a “Buy” Rating with a $14 target citing the potential for the studios division to attract strategic suitors, while the cable division monetizes global network assets more efficiently.
Warner Bros. Discovery Daily Chart , Sigmanomics
Warner Bros. Discovery Daily Chart
After announcement of Warner Bros. company splitting, price action spiked on the day; however, upside appears to be limited by descending trendline. This is of technical note as the formation is also developing a triangle on the daily chart. As of now, range trading is preferred between the upper and lower bounds of the triangle; however, breakout will be posed to see either new highs above $12.70 or lows below $6.94.
Not to overlook, chart analysis also shows WBD forming a double bottom, with near-term buying opportunities at $11.90.
