Back in 2012, just after Facebook IPO, a significant concern emerged among investors. Consumers were increasingly using their mobile devices to access Facebook (FB). Since the screen sizes
Discovery: Low Valuation, Good Growth Prospects And Potential For Retail Activism
Summary
- Discovery has entered a new phase of growth with Discovery plus launch which offers better monetization through higher ARPUs and convenient to use offerings.
- Discovery plus is likely to have higher margins and lower breakeven point given its leadership position in non-scripted content.
- The stock is trading at less than 5x FCF of its legacy business while the company's next-generation initiatives are taking off.
- I believe low valuations, high short interest, successful pivot to Discovery plus platform gives stock significant upside and makes it a good candidate for "retail activism".
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Analyst’s Disclosure:I am/we are long DISCA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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