What Warner Bros. Discovery Haters Are Getting Wrong

David Zaslav at the "House of the Dragon" red carpet premiere. Photo by Kristina Bumphrey/Variety via Getty.

If there’s one sector of the stock market that is repellent to investors right now, it’s traditional entertainment. And if there’s one company that sums up how out of favor the sector is, it’s Warner Bros. Discovery.

The owner of HBO, Warner Bros. and the Max streaming service—once one of the premier entertainment businesses in the world—has seen its stock collapse to below $7 in recent days, down 73% in two years. Including its debt, WBD has a total enterprise value of just $54 billion, one-fifth of Netflix’s value.