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Investors hold their breath as Warner Bros (NASDAQ:WBD) plans to cut costs

Cost-cutting measures are hitting everywhere as businesses all consider their next moves in the face of growing economic uncertainty. Even Warner Bros. Discovery (NASDAQ:WBD) is reconsidering its decision and is already considering future cost reduction efforts. This has left investors gasping with anticipation, and shares are currently relatively stable as a result.

Warner is considering making cuts, and reports indicate that the cuts will likely begin in the marketing division and technology sector of its streaming operations. In the last year alone, Warner has cut approximately 2,000 employees from its workforce. This has already resulted in substantial savings, but Warner is far from done on this front.

While the layoffs may not have happened, reports suggest that Warner is also considering a price hike on Max and Discovery+ in a bid to tip the scales in the other direction and improve the equation for profits accordingly.

Backing up content

But simply raising prices won’t be enough, unless there’s a reason to stay. And Warner has enough problems on that front due to his recent struggles with NBA rights. But reports indicate that could soon change; Dale Earnhardt Jr. is reportedly out of NBC Sports and headed to Warner instead. He will also serve as a reviewer for Amazon (NASDAQ:AMZN) NASCAR Efforts. Additionally, Warner is working on a new true crime show known as “True Crime News,” which will feature Ana Garcia as host. The show covers pretty much exactly what a show called “True Crime News” would cover.

Warner Bros. shares Are Discovery a good buy?

As for Wall Street, analysts have a Moderate Buy consensus rating on WBD stock based on nine buys, seven holds and one sell assigned over the last three months, as shown in the chart below. below. After a 42.06% loss in its stock price over the past year, WBD’s average price target of $13.61 per share implies 74.82% upside potential.

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