Michael Burry Was Wrong About These 3 Stocks

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

Number of Hedge Fund Holders: N/A

Percentage Decline in Share Price (YTD): 31.29% 

Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media firm. Regulatory filings show that Scion Asset Management owned 750,000 shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of March 2022 worth $18.7 million, representing 9.29% of the portfolio. 

On June 2, Wolfe Research analyst Peter Supino maintained a Peer Perform rating on Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock and lowered the price target to $20 from $30, noting that there was “unremitting pressure” on subscriber acquisition costs and pricing.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Laurion Capital Management is a leading shareholder in Warner Bros. Discovery, Inc. (NASDAQ:WBD), with 13.5 million shares worth more than $338 million.

In its Q1 2022 investor letter, Silver Ring Value Partners, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. (NASDAQ:WBD) was one of them. Here is what the fund said:  

“Discovery completed the acquisition of the Warner Media business from AT&T in April, and the combined business is now named Warner Bros. Discovery, Inc. (NASDAQ:WBD). We are currently in the middle of an interesting technical event, following the spin-off special situation playbook.

The acquisition was structured as a spin-off of Warner Media, with AT&T shareholders receiving ~ 70% of the shares in the combined entity, or ~ 1.7B shares. Many of these shareholders owned AT&T for its phone business and its dividend. It appears that there has been elevated noneconomic selling as these shareholders exit regardless of price. On the other side, few if any investors want to buy the Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares prior to this forced selling being over.” (Click here to read full text)