Why Warner Bros. Discovery Shares Are Falling Following Netflix's Earnings Report

Warner Bros. Discovery WBD shares are trading lower in sympathy with a decline in Netflix Inc NFLX shares after Netflix reported first-quarter earnings results. Also, a report suggesting the company suspended external marketing spending for CNN+ could also be impacting the stock. The company also operates two major streaming services, HBO Max and Discovery+.

Netflix reported quarterly earnings of $3.53 per share which beat the analyst consensus estimate of $2.90. Netflix also reported quarterly sales of $7.87 billion which missed the analyst consensus estimate of $7.93 billion by 1%. Global streaming paid net additions were down 200 thousand. 

Netflix sees second-quarter revenue of $8.053 billion, below the analyst consensus estimate of $8.21 billion. Netflix also sees EPS of $3.00, below the analyst consensus estimate of EPS of $3.01. Netflix also guided for second-quarter global streaming paid memberships of 219.64 million, which represents a decrease of 2 million from the first quarter.

According to data from Benzinga Pro, Warner Bros. Discovery has a 52-week high of $39.70 and a 52-week low of $21.66.