Summary by Futu AI
Warner Bros Discovery reported Q4 2024 revenues of $10.0 billion, down 2% YoY, with a net loss of $494 million. The quarter saw strong DTC performance with global subscribers reaching 116.9 million, adding 6.4 million subscribers. DTC segment achieved Adjusted EBITDA of $409 million, a significant improvement from prior year's loss.Studios segment revenue increased 16% to $3.7 billion, driven by higher TV content licensing and deliveries. Networks segment faced challenges with revenues declining 4% to $4.8 billion, impacted by a 9% drop in domestic linear pay TV subscribers and a 28% decline in domestic networks audience.The company ended Q4 with $5.4 billion cash on hand and $40.0 billion gross debt, maintaining a 3.8x net leverage ratio. Free cash flow was $2.4 billion, down from $3.3 billion in the prior year quarter, primarily due to higher net content investment partially offset by improved operating profits.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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