Discovery Rallies 16% In One Day: A Lesson In Risk/Reward

George Theodosi
525 Followers

Summary

  • Discovery shares rallied on Friday 7th January, hitting over $30 intraday.
  • This comes as BofA upgraded Discovery from a neutral rating to a buy.
  • Discovery was trading (still is) at a throwaway valuation compared to post-merger financials.

Television streaming, multimedia wall concept

simpson33/iStock via Getty Images

What happened?

Today the market finally gave long overdue credit to Discovery (DISCA) (DISCK) as BofA upgraded them to a buy rating. Discovery has been well covered on SA and I believe it still remains one of the best risk/reward

This article was written by

525 Followers
I'm an IMC qualified contributor who's followed financial markets for 5 years and has worked professionally in primary investment research for over 2 years. I'm a generalist who enjoys researching businesses from a buttom's up angle with a deep interest in smaller under covered companies where there is greater opportunity for mis-pricing and finding asymmetric opportunities where the downside is limited.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DISCK either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About WBD Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on WBD

Related Stocks

SymbolLast Price% Chg
WBD
--