Warner Bros. Discovery Inc (NASDAQ WBD) shares are trading lower by 4.1% to $12.18 Friday afternoon. The stock is falling amid the ongoing SAG-AFTRA and Writers Guild of America (WGA) strikes and the postponement of the release of "Dune: Part Two" from November to March 15, 2024.
Strikes often come with increased production costs as alternative arrangements or temporary workers may need to be hired to keep productions running. These additional expenses can strain WBD's financials, potentially impacting its profitability and cash flow.
The ongoing strike was widely speculated to disrupt the production of films, TV shows and other content owned by WBD. This disruption has now resulted in delays in releasing new content, impacting the company's ability to generate revenue and meet audience demands. Investors may perceive this as a negative sign, potentially leading to a decline in the stock price.
Due to the shift, the release date for "Godzilla x Kong: The New Empire" initially scheduled for March 14, has been moved to April 12. This domino effect also pushed an animated "Lord of the Rings" film, earlier slated for April, to December...Read More
According to data from Benzinga Pro, WBD has a 52-week high of $16.34 and a 52-week low of $8.82.
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