Should You Sell Warner Bros. Discovery (WBD) Stock?

Greenlight Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Greenlight Capital funds returned 4.0% net of fees and expenses compared to a 4.9% decline for the S&P 500 index. For the nine months ended September 2022, the fund delivered a 17.7% return net of fees and expenses compared to a 23.9% decline for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Greenlight Capital discussed stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q3 2022 investor letter. Headquartered in New York, New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company. On October 20, 2022, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $12.92 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was 9.58% and its shares lost 48.53% of their value over the last 52 weeks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a market capitalization of $31.364 billion.

Greenlight Capital made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q3 2022 investor letter:

“Finally, we sold unsuccessful investments in PLBY and Warner Bros. Discovery, Inc. (NASDAQ:WBD). We thought both companies were going through substantial corporate transformations. PLBY failed to execute on its strategy and we exited with a 50% loss on our investment. We sold WBD as it faces a more challenging path to executing its integration plan than we expected. It also has a sizable amount of debt. We are trying to avoid levered equities in the current economic environment. We lost approximately 40% on WBD in half a year. Both positions were small.”

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the second quarter, which was 47 in the previous quarter.

We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in another article and shared Oakmark Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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