Shares of Warner Bros. Discovery (WBD) plunged 5.06% in Friday's pre-market trading session following the release of its second-quarter earnings report and subsequent analyst reactions. The entertainment giant's financial results painted a mixed picture, leading to a sell-off among investors.

While Warner Bros. Discovery managed to swing to a $1.6 billion net profit in the second quarter from a $10 billion loss a year earlier, the 1% increase in revenue failed to impress market participants. The company's streaming service, HBO Max, showed some positive signs with $300 million in EBITDA and a modest 3% growth in subscribers to 126 million. However, these improvements were not enough to offset broader concerns about the company's future.

Adding to the downward pressure, several analysts adjusted their price targets for WBD stock. Raymond James cut its target price to $13 from $14, while Deutsche Bank lowered its target to $19 from $20, maintaining a Buy rating. These downgrades reflect growing skepticism about the company's ability to navigate the challenging media landscape. Investors also seem wary of CEO David Zaslav's leadership, given the company's underperformance since the Warner Media merger in 2022. The announcement of a corporate split planned for mid-2026, with Zaslav set to lead the Warner Bros streaming and studios division, has not alleviated these concerns.