Discovery Inc. has invested heavily in the promotion of its Discovery + OTT platform, launched January 4.
With some Wall Street watchers newly concerned that streaming revenue and subscriber growth may be lagging, the company’s stock on Wednesday was swept up in a wave of downward activity on Wall Street.
At the Closing Bell, DISCA completed the trading session at $61.94, a 13.6% day-over-day decline.
In early after-hours trading, however, some value investors were already in buy mode. This put DISCA at $62.15 as of 4:14pm Eastern.
With a $46.80 target price, Discovery shares may be a little overheated — similar to what some are saying about ViacomCBS’s recent run-up in value and subsequent two-day collapse.
For Discovery, its share price is where it was on March 3. Further, DISCA had been regularly trading in the low $20 range across the pandemic. It wasn’t until early November 2020 when the big growth spurt started.