Discovery Inc News and Headlines -
Discovery Inc. (DISCA) (DISCK) is a media company that provides TV content in around 220 countries and in 50 different languages worldwide.
The company is well-known for its non-fiction TV shows, broadcasting on Discovery Channel, Food Network and Eurosport, among others.
Discovery's programs are available on various platforms, the most common being linear TV (either cable or satellite) and its recently introduced Direct-to-Consumer (DTC) streaming platform, discovery+.
The company's stock was recently on a roller coaster, (partially) pushed up by speculation and then down by forced selling.
The Archegos meltdown
But what happened exactly with the sharp price
Discovery, Inc. Series A (DISCA)
Discovery stock benefited during the first quarter from the launch of Discovery+ and the company's new focus on digital direct-to-consumer content delivery. Since its debut in January, Discovery+ has already gained over 12 million paid subscribers thanks to its unique portfolio of unscripted content that enjoys worldwide recognition. Its main channel is one of the most widely distributed networks in the world and reaches more than 220 countries. Discovery is hoping to draw this large audience into Discovery+ to help offset continued declines in traditional TV subscriptions. Discovery has been working to expand their reach
Spring 2021 Market Commentary
During the first quarter of 2021, equity markets continued to rally on the back of strong earnings and powerful macro tailwinds. As COVID-19 vaccinations have been widely accessible, local restrictions have eased and demand is rebounding. Monetary and fiscal government accommodation has continued to be aggressive. Money supply growth is still running over 25%. The Fed continues to buy $120 billion in bonds per month for a total in excess of $2.4 trillion from February 2020. Since August of 2020, we have seen a material change in market leadership as cheaper, more cyclical businesses have been
Discovery Inc. (DISCA) (DISCK) (2.1%) (DISCA/DISCK – $36.89/$43.46 – NASDAQ), located in Silver Spring, Maryland, is a global nonfiction media and entertainment company that provides programming to pay-tv distributors through network brands such as the Discovery Channel, TLC, Animal Planet, HGTV, Food Network, and ID. Discovery generates 50% of revenue via long term agreements with pay-tv distributors, is diversified internationally and owns most of its low cost programming. Industry leading margins are especially attractive, given the low capital intensity of the cable network business. The company is pivoting to OTT in order to connect directly with consumers allowing it
The first quarter was extraordinary for traditional media stocks including ViacomCBS (7.6% of net assets as of March 31, 2021, +25%), and Discovery (2.1%, +41%) and AMC Networks (0.3%, +49%) as the rotation to value stocks and re-opening beneficiaries and the launch of direct-to-consumer services Paramount+ and Discovery+ led the stocks to nearly triple by early March. In retrospect, it appears that leveraged momentum trades by funds including Archegos Capital fueled some of those gains and ultimately led to significant declines in the final days of the quarter as Archegos collapsed and its positions quickly liquidated. Nevertheless, the
The guru's Target Corp. (TGT) position was reduced by 13.07%, impacting the portfolio by -1.02%.
The U.S. general merchandise retailer has a market cap of $103.19 billion and an enterprise value of $109.78 billion.
GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 34.48% and return on assets of 9.2% are outperforming 87% of companies in the
The fund operates under Smead Capital Management. Its contrarian investing strategy is based on large-cap stocks that meet the following criteria: serve an economic need, have a strong competitive advantage, have a long history of profitability and strong operating metrics, generate high levels of free chase flow, are undervalued, have a strong balance sheet, show insider ownership and have a history of friendly relations between management and shareholders. The fund is managed by lead
The stock of Discovery (NAS:DISCA, 30-year Financials) appears to be modestly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future
For the details of Wolfswood Holdings, LLC's stock buys and
"Another lesson I learned early is that there is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the stock market to-day has happened before and will happen again. I've never forgotten that. I suppose I really manage to remember when and how it happened. The fact that I remember that way is my way of capitalizing experience." (attributed to speculator Jesse Livermore)
― Edwin Lefèvre, Reminiscences of a Stock Operator
A hundred years after Jesse Livermore ruled Wall Street, another uber speculator, Sung Kook "Bill" Hwang,
The Dow Jones Industrial Average closed at 33,066.96 on Tuesday with a loss of 104.41 points or -0.31%. The S&P 500 closed at 3,958.55 for a loss of 12.54 points or -0.32%. The Nasdaq Composite closed at 13,045.39 for a loss of 14.25 points or -0.11%. The VIX Volatility Index was lower at 19.61 for a loss of 1.13 points or -5.45%.
Tuesday's market movers
The major U.S. indexes closed lower Tuesday, but small caps gained. Investors continued to gauge the damage from Archegos Capital's liquidation, though the S&P financial sector showed a recovery. Hedge fund Archegos has been reported
The stock of Discovery (NAS:DISCK, 30-year Financials) is believed to be significantly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its
The Dow Jones Industrial Average closed at 33,171.37 on Monday with a gain of 98.49 points or 0.30%. The S&P 500 closed at 3,971.09 for a loss of 3.45 points or -0.09%. The Nasdaq Composite closed at 13,059.65 for a loss of 79.08 points or -0.60%. The VIX Volatility Index was higher at 20.74 for a gain of 1.88 points or 9.97%.
Monday's market movers
U.S. stocks ended mostly lower Monday to start a shortened four-day holiday week. Investors were concerned over losses from Archegos Capital. The firm has reportedly liquidated approximately $30 billion to cover margin calls. Stocks with
One of the biggest questions that investors in the U.S. want the answer to is when the Federal Reserve is going to begin raising the base interest rate again. However, the Fed itself seems determined to keep interest rates at or near zero for at least a few more years, conforming with the downwards trend that the U.S. federal funds rate has been in since the 1980s.
Given this trend, big banks have been increasingly turning to investment banking as a source of income in the hopes of continuing to grow their profits this way. However, the fallout from a
Reports are circulating that Bill Hwang's Archegos Capital was behind last Friday's trading frenzy, where many large-cap stocks slumped in value.
Most of the reports coming out at the moment are not based on concrete evidence, only speculation, so we don't know the true scale of the issue. However, two large banks, Credit Suisse (CS) and Nomura (NMR), have both admitted that they're likely to lose large sums due to the firm's trades.
These banks are on the hook because it seems as if Archegos was borrowing vast amounts of cash to fund leveraged trades from these institutions.
The stock of Discovery (NAS:DISCA, 30-year Financials) appears to be significantly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future
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