Warner Bros. Discovery stock plummets due to declining ad market and disappointing earnings

Warner Bros. Discovery (WBD) stock plunged over 15% as the company highlighted ongoing weakness in the ad market, which could impact its visibility for 2024. The company's CFO expressed doubts about hitting their target leverage range without a meaningful recovery in the TV ad market. WBD, like other media companies, has been grappling with an unfavorable ad environment, leading to a decline in network advertising revenue. However, the company reported improved streaming losses and a wider-than-expected loss in the third quarter as it works to reduce debt amid challenges such as the Hollywood strikes. The box office revenue was a bright spot, driven by the success of the film "Barbie."