Warner Bros. Discovery (WBD) reported a better-than-expected third-quarter earnings, driven by strong growth in its direct-to-consumer (DTC) segment, particularly its Max streaming platform. The company added 7.2 million new Max subscribers, marking the platform’s highest quarterly growth since launch. This growth, alongside a new partnership with Charter Communications, contributed to a 9% increase in DTC revenue year-over-year.
Analyst Dana Telsey from Telsey Advisory Group maintains a positive outlook on Levi Strauss & Co. (LEVI), citing a stabilizing denim market, streamlined operations, and strong DTC performance. While the company experienced some challenges in the third quarter, Telsey believes its focus on core areas and cost-saving initiatives will drive future growth.
Needham analyst Laura Martin reaffirms her Buy rating for Disney, citing strong direct-to-consumer (DTC) growth, strategic partnerships, and a robust content library. Martin expects Disney to reach DTC breakeven in 2024 and projects significant subscriber growth, driven by new deals with Charter Communications and the success of Disney+ content. She also highlights Disney’s strategic investments in areas like gaming (Epic Games) and its focus on building capacity for future growth in its parks. While revising her estimates for the fourth quarter, Martin remains bullish on Disney’s long-term prospects.
Paramount Global and Skydance Media are merging, leading to questions about the future of Paramount+. While the streaming service will remain, it is expected to undergo significant changes to improve its technology and user experience. The merger could also lead to larger streaming bundles, similar to the cable bundles of the past.
