5 Worst Performing Stocks in S&P 500

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

YTD Performance as of February 23: -24.34%

Number of Hedge Fund Holders: 56

New York City-based Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It was formed in April 2022 through the merger of WarnerMedia’s merger with Discovery which combines premium entertainment, sports and news assets with leading non-fiction and international entertainment and sports businesses.

On February 23, Warner Bros. Discovery, Inc. (NASDAQ:WBD) released its financial results for Q4 2023 which failed to meet the consensus estimates for EPS and revenue. The company generated a revenue of $10.3 billion and a normalized EPS of -$0.13, which missed expectations by $0.12.

In its Q3 2023 “Partners Fund” investor letter, Longleaf Partners, managed by Southeastern Asset Management, made the following comments about Warner Bros. Discovery, Inc. (NASDAQ:WBD):

“Media conglomerate Warner Bros Discovery (WBD) declined in the quarter with a combination of the writers’ and actors’ strikes headlines, and a fight between Charter and Disney that led to more concerns about the linear and streaming profit structure. Although both situations actually improved as the quarter went on, both created uncertainty that weighed heavily on the WBD stock price in the near term. The underlying business is executing better, with solid free cash flow generation reported in the quarter that should continue for the foreseeable future. The competitive landscape is getting brighter with multiple streamers taking price increases. WBD is in the hands of a strong management team and board that are focused on creating long-term value for shareholders.”