Should I buy Discovery stock in 2025?

What is Discovery?

How much is the Discovery stock?

The price of Discovery stock is rising this week. As of now, the current stock price stands at $10.04, showing a 0.20% gain over the last 24 hours and a strong 12.18% increase for the week. Discovery's market capitalisation is $24.84 billion, with an average of 41.9 million shares traded daily over the past three months.

The stock currently does not have a P/E ratio due to negative earnings and offers no dividend yield, while its beta is 1.47, indicating relatively higher volatility. Investors should note the recent upward momentum, but also consider the higher risk profile reflected in the beta and ongoing market dynamics.

Our full analysis on the Discovery stock

Having meticulously reviewed Warner Bros. Discovery’s (WBD) latest financial results, as well as its stock performance over the past three years, we have employed our proprietary methodology—blending robust financial metrics, technical signals, market context, and peer benchmarks—to present a comprehensive analysis. The data uncovers a stock in transition, navigating sectoral disruption with an improving risk-reward profile. So, why might Discovery stock once again become a strategic entry point into the global communication services sector in 2025?

Recent Performance and Market Context

Warner Bros. Discovery enters mid-2025 with a return profile that stands out, especially in the face of market volatility that has impacted the broader entertainment and streaming industry. The stock currently trades at $10.04, comfortably off its 52-week low of $6.64, reflecting a compelling +31.07% gain over the last twelve months. Notably, the recent uptrend is underscored by a 14.5% advance over the previous month and a solid 12.2% appreciation during the past week, indicating a shift in investor sentiment that correlates with sequential operational improvements and reduced volatility.

On the macro level, the entertainment sector remains in flux, challenged by ongoing cord-cutting and platform shifts, but compelling tailwinds are emerging. Streaming adoption continues to rise globally, while consumer appetite for premium, on-demand content remains robust. Moreover, Discovery’s position as a US-listed sector leader ensures its liquidity and relevance for local (ZA) investors seeking global diversification from the Johannesburg Stock Exchange (JSE). These sectoral and market tailwinds are further enhanced by the company’s ongoing deleveraging initiatives—a strategic pivot that is favourably perceived by institutional investors.

Technical Analysis

A closer inspection of technical indicators paints a nuanced but increasingly constructive picture. The Relative Strength Index (RSI) sits at a neutral 51.2, signifying neither overbought nor oversold conditions and giving the stock headroom for further appreciation. The Moving Average Convergence Divergence (MACD) has recently turned positive (0.04), a classic early signal of bullish momentum after a lengthy consolidation phase.

Price action analysis reveals that WBD is now trading above key short-term support levels, notably outpacing its $6.64 52-week low, with the latest rally taking it above significant resistance clusters at $9.22–$9.27. This breakout is validated by heightened volume, suggesting renewed institutional interest. While longer-term moving averages remain mixed—reflecting the overhang from a turbulent prior year—the medium-term structure is resolving upward. The technical outlook thus suggests Discovery may be entering a new bullish phase, offering long-only investors an attractive entry following constructive bottoming behavior.

Fundamental Analysis

• Revenue and Profit Trends: While reported revenue fell 9% year-on-year for Q1 2025 and net losses continue (-$0.18 per share), adjusted EBITDA grew 4% (ex-currency) to $2.1 billion—pointing to improved core operational profitability, particularly in the direct-to-consumer (DTC) streaming segment. This trend is critical as content companies pivot from linear to digital models.
• Valuation: The current price/sales (0.64x) and a price/book of 0.73x signal a meaningful discount to intrinsic value and sector peers. The stock’s valuation appears to already price in cyclical headwinds, offering a favorable margin of safety for value-oriented investors. Importantly, enterprise value/EBITDA stands at 5.34x, an attractive level given the scale and embedded optionality in Discovery’s content library.
• Structural Advantages: Discovery commands a premium IP moat, with powerhouse brands like HBO, DC, and Warner Bros. films translating to enduring market share and pricing power. The Max (formerly HBO Max) streaming platform is gaining traction, positioning the group for monetization upside as consumer streaming behaviors normalize. Additionally, cost-optimization programs rolled out by CEO David Zaslav are beginning to materialize in operational leverage.

Taken together, these factors justify renewed interest in WBD on a fundamental basis, despite headline net losses—a typical feature of companies undergoing transformative pivots.

Volume and Liquidity

Liquidity and volume dynamics further reinforce the appeal of the current entry point. The average daily trading volume hovers near 42 million shares, ensuring frictionless execution for institutional and retail investors alike—key for ZA investors seeking dollar-denominated, globally traded equities. The public float remains robust, contributing to fair price discovery and cushioning against erratic price swings.

High sustained trading volume, particularly during recent rallies, is a classic indicator of market conviction and often precedes longer-term rerating. This market structure suggests that WBD is not only institutionally relevant but also remains a favored vehicle for investors seeking exposure to premium global media assets.

Catalysts and Positive Outlook

• Streaming Growth Trajectory: Management targets $1.3 billion EBITDA from streaming in 2025, a remarkable 85% climb year-on-year. Achieving 150 million Max subscribers by end-2025 would materially reposition Discovery’s earnings mix and rerate its valuation multiples.
• Strategic Corporate Actions: The rebranding of Max (back to “HBO Max”) and continued investment in original content reinforces the company’s position as a must-have platform, supporting subscriber and revenue growth.
• Balance Sheet Deleveraging: The company has reduced total gross debt by $2.2 billion in Q1 and $5.3 billion net across the last twelve months, bringing net leverage to a more manageable 3.8x adjusted EBITDA. This not only lowers risk but also frees up capital for strategic investments as industry conditions improve.
• Cost Rationalization: CEO-led cost disciplines are driving incremental EBITDA and support the journey to sustained profitability.
• Sector Momentum: Industry consolidation rumors and potential regulatory relief in digital content distribution add further optionality to the outlook.

ESG-conscious investors will also note that Discovery’s content and distribution models continue to prioritize diversity, accessibility, and responsible media standards—an increasingly relevant dimension for long-term capital allocators.

Investment Strategies

• Short-Term: Recent technical breakouts and volume surges make the stock attractive for momentum traders seeking a swing entry, especially given the proximity to multi-month highs and the prospect of follow-through rallies ahead of the next earnings event in August 2025.
• Medium-Term: Upcoming strategic milestones—such as the aggressive streaming subscriber ramp, further deleveraging, and content launches—create a rich pipeline for news-driven upside, ideally suiting investors with a 6–12 month view.
• Long-Term: Discovery’s ongoing portfolio transformation, leading IP assets, and improving balance sheet underpin a case for core portfolio inclusion. The current valuation compresses much of the cyclical and execution risk, offering a significant upside skew as management converts initiatives into recurring free cash flow.

In each scenario, the stock seems to represent an excellent opportunity for patient investors, particularly when taking positions at or just above recent support, and ahead of the next anticipated growth catalyst.

Is It the Right Time to Buy Discovery?

Warner Bros. Discovery emerges in 2025 as a dynamic recovery play in the global entertainment sector, underpinned by undervalued core assets, robust IP, and accelerating streaming momentum. The stock’s recent technical breakout, attractive valuation multiples, and tangible operational progress combine to justify a constructive outlook. With deleveraging tracking ahead of plan and several key business catalysts on the horizon, Discovery appears exceptionally well positioned for rerating as structural headwinds recede.

Investors seeking global technology and media exposure would be well served to seriously consider Discovery as it transitions from a turnaround story to a growth narrative. The fundamental and technical signals collectively point to the stock potentially entering a new bullish phase—making this juncture a particularly interesting moment for renewed engagement.

For those with an eye on opportunity and willingness to embrace a dynamic recovery arc, Warner Bros. Discovery stands out as a case study in resilience and reinvention, and may well reward those prepared to position now for the next phase of value creation.

How to buy Discovery stock in South Africa?

Buying Warner Bros. Discovery (WBD) shares online is both straightforward and secure when using a regulated broker in South Africa. Today’s digital platforms make it easy for retail investors to access US markets and invest in leading companies like Warner Bros. Discovery from the comfort of home. Typically, you can choose between two main investment methods: buying the shares outright (spot buying) or trading with Contracts for Difference (CFDs), which allow you to speculate on price movements. Each method has its own characteristics, which we'll break down below. For more details, see our broker comparison guide further down the page.

Spot buying

A cash purchase means buying Warner Bros. Discovery shares directly. This method makes you a shareholder, giving you ownership rights and potential to benefit from any future growth (as well as risks if the value drops). Most regulated brokers in South Africa charge a fixed commission per order, often ranging between R50 and R150 (about $2.50–$8) depending on the platform, plus a possible minor local custody or admin fee.

Example

If the Warner Bros. Discovery share price is $10.04 (about R184 at an exchange rate of R18.35/USD), and you invest $1,000 (around R18,350), you can buy approximately 99 shares (excluding minor currency conversion fluctuations and including a brokerage fee of roughly $5).

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on price changes of Warner Bros. Discovery shares without owning the actual shares. With CFDs, you can go long (profit if the price rises) or short (profit if the price falls). Fees typically include a spread (the difference between buy and sell prices) and an overnight financing fee if you hold your position for more than a day.

Example

If you open a CFD position on Warner Bros. Discovery shares with $1,000 and 5x leverage, you are exposed to $5,000 worth of shares.

✔️ Gain scenario: If the share price rises by 8%, your leveraged position earns 8% × 5 = 40%.

Result: +$400 gain on your $1,000 investment (excluding fees).

Final advice

Before investing, it’s crucial to compare brokers’ fees, platforms, and trading conditions, as costs can significantly affect your returns. The best choice will depend on your investment goals and risk profile: spot buying is simple and gives you ownership, while CFDs offer flexibility and leverage, but at higher risk. Be sure to check our broker comparison further down the page to find the option that suits you best.

Our 7 tips for buying Discovery stock

The latest news about Discovery

Discovery stock saw a strong 12.18% weekly gain, fueling bullish sentiment among ZA market participants. This robust move follows a sustained 14.48% gain over the past month and a 31.07% rally year-on-year, positioning Discovery as one of the more resilient performers in the entertainment media sector. South African investors exposed via dual-listed platforms or global indices have benefited from this momentum, which is widely attributed to growing confidence in Discovery’s operational turnaround and sustained investor interest in premium content.

Warner Bros. Discovery achieved $2.2 billion in gross debt reduction in Q1 2025, improving financial stability. With the total debt now down 5.5% year-on-year to $38 billion and net leverage reaching 3.8x Adjusted EBITDA, the group’s deleveraging strategy is increasingly being recognized as a constructive catalyst by analysts. This debt reduction is particularly pertinent to ZA investors focused on credit risk and the sustainability of overseas investments in domestic pension or unit trust portfolios. Continued progress on this front reduces default risk and enhances the group’s ability to reinvest for growth, indirectly supporting ZA-based macro asset allocations.

Streaming profitability accelerated, with $339 million Q1 EBITDA and a near-doubled 2025 EBITDA target of $1.3 billion. Discovery’s focus on streaming aligns with global consumer trends and aims to reach 150 million Max subscribers by year-end. For South African consumers and institutional investors tracking the evolution of digital content and its cross-border reach, the company’s rapid progress strengthens the investment case. The ongoing local availability of Discovery’s content and global expansion efforts meet increasing demand for premium international entertainment in Southern Africa.

Analyst sentiment improved, reflected by a consensus price target of $13.76—37% above current levels, with several ‘Buy’ ratings maintained. Benchmark’s $18 target highlights the scope for further appreciation, bolstering confidence among professional managers in ZA who benchmark global equities. While Citi recently trimmed its target, the prevailing ‘Moderate Buy’ stance and the broad target range ($9–$24) suggest persistent institutional optimism, especially as Discovery’s streaming transition matures.

Discovery’s premium content portfolio, including HBO and Warner Bros. films, supports ongoing demand in the Southern African market via local distribution partners. Strategic content partnerships and the presence of Discovery Channel and affiliated products on South African satellite and streaming platforms ensure continued relevance in the ZA market. As media consumption in the region shifts increasingly toward digital channels, Discovery’s strong intellectual property pipeline offers diversification and defensive qualities valued by local investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.