Warner Bros. Discovery Inc. (WBD): David Einhorn Likes This Entertainment Stock

We just covered 15 Under-the-Radar Picks from David Einhorn That Are Quietly Dominating 2026 and Warner Bros. Discovery, Inc. (NASDAQ:WBD) ranks 8th on this list.

Warner Bros. Discovery, Inc. (NASDAQ:WBD) first appeared in the 13F portfolio of Greenlight Capital in the second quarter of 2022. This position comprised 1.6 million shares but was sold off completely by the next quarter. Filings for the fourth quarter of 2025 show that the fund has opened a new position in the company comprising 1.5 million shares. The firm operates as a media and entertainment company worldwide. It offers streaming services, such as HBO Max and Discovery+, and premium pay-TV services. Rival Paramount recently agreed to acquire WBD for roughly $110 billion in total enterprise value.

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Warner Bros. Discovery, Inc. (NASDAQ:WBD) is turning heads on Wall Street because as competitors are still burning cash, the firm has turned Max into a profitable segment. The successful 2025/2026 rollout of Max in key European and Asian markets has provided a fresh wave of subscriber growth. Hedge funds are bullish on the super-bundles, such as the Max/Disney+/Hulu partnership, which have significantly reduced churn and lowered customer acquisition costs. Elite investors are also tracking the replacement value of the massive library of the company, comprising the DC Universe, Harry Potter, Game of Thrones. The pivot to licensing certain titles back to competitors like Netflix has provided a high-margin revenue stream that was previously untapped.

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.

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