Jim Cramer Says Someone Might Go to Jail For Buying Warner Bros. Discovery, Inc. (WBD) Call Options

We recently published 10 Stocks Jim Cramer Discussed As He Remained Optimistic About American Ingenuity. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the stocks Jim Cramer recently discussed.

Warner Bros. Discovery, Inc. (NASDAQ:WBD)’s shares have gained a stunning 50% since Thursday following a Wall Street Journal report claiming that the firm would be acquired by Paramount Skydance. Cramer discussed Warner Media Holdings, the firm’s subsidiary’s debt, the benefits to Paramount, and Oracle billionaire Larry Ellison’s involvement in the affair. He also commented on reports of someone buying 100,000 call options to make money

Photo by geo uc on Unsplash

“Okay so David I’m looking at WarnerMedia Holdings, I’m looking at all these different pieces of debt, they’re all horrendous. If I had Amazon, I would say, well you know what, we could really do a killing, or Apple. We’ve got the best balance sheet in the world, we just pay off that debt, we immediately become the number one entertainment company. We don’t know how to do entertainment, we’re using TimeWarner for a lot of the things anyway. David, can’t these companies pay much, much more and just decide you know what, we want this and we love Ellison, he’s a terrific guy, but he can’t be in our league.

“[On whether you spin off cable networks] No David, but Apple thinks long term. Amazon thinks long term.

“David does it matter that right now they’re number one in everything. Number one in everything right now. We know that. That’s why you can steal it. You can steal it.

“Well, I’ve got to tell you Carl, how many, a couple of weeks ago we thought all of these were worthless. Then we have EchoStar, we have this, I mean WarnerBrothers Discovery is one of the greatest shorts of all time. Right. I mean you just short it forever until the cows come home. Bad balance sheet. Who knows what’s going to happen with TV. And then suddenly, maybe it’s worth 25, Carl.

“Look David, I think, answer this for me. Can a family company, can a family company move faster than a Amazon, move faster than a Apple, move faster than Netflix?

“[On whether Ellison is getting sentimental] No he’s not as sentimental a fellow. No I don’t want anyone to even think that for a second. No. I mean he’s nicer than Alex Karp!

“[On Faber sharing he reported that somebody bought 100,000 Warner Brother calls, 100,000 contracts yesterday and how that maybe one reason there was a feeling they might be able to get a bid out there on the Paramount side and how they could be in big trouble] Yeah, they’ll probably go to jail, spend some time thinking maybe about zero options in jail, maybe trade more of the SPX then they do individual stocks.”

While we acknowledge the risk and potential of WBD as an investment, 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 and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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