Trade the Discovery share!
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Analysis of Discovery share price

Trade the Discovery share!
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If you want to take a position in the American stock of the Discovery Group, you must first be able to carry out a good analysis of the stock's price. To do this, you will need to have all the necessary knowledge about the company and its economic environment. In this article, we propose that you discover some data concerning this group with its main activities, its major competitors in this sector of activity, its main partners as well as some information to help you set up a coherent fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, it will be necessary to closely monitor the various tie-ups between Discovery and other companies in the same sector with possible strategic acquisitions or mergers that would enable it to gain market share.

Analysis N°2

It will also be necessary to look at the competition in this sector by studying all the news, developments and major events of other companies operating in the media and entertainment sector.

Analysis N°3

Discovery's business model and changes to it may also have a strong influence on its profitability and it will be important to keep an eye on the strategic partnerships and alliances it may develop.

Analysis N°4

The company's financial results and their evolution over time should also be carefully monitored and compared with analysts' expectations and the group's forecasts.

Analysis N°5

Finally, it will be necessary to look at the consensus of analysts who follow this stock with their expectations of turnover, profits and price target.

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General presentation of Discovery

It is of course also essential to have a good understanding of Discovery and its activities and revenue streams, so as to better understand how it may evolve in the future, seize certain opportunities or face certain threats. Here is a complete overview of the group.

Discovery Group Inc. is a US-based media company. More specifically, the company offers content on a variety of distribution platforms including pay, free-to-air and broadcast television, authenticated GO applications, digital distribution agreements, content licensing agreements and direct-to-consumer subscription products.

The Discovery Group's activities are divided into different sectors with :

  • US Network, which includes mainly national television networks and digital content services
  • International Network which consists of the international television networks and digital content services.

The group's network portfolio includes television brands such as Discovery Channel, Food Network, Animal Planet, Investigation Discovery, Travel Channel, Science and MotorTrend.

The group is also engaged in expanding the distribution of content across different platforms including branded websites, mobile devices, video on demand, online streaming and broadband channels.

The Discovery Group currently employs over 11,000 people.

Analysis of Discovery share price
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The major competitors of Discovery

Of course, Discovery operates in a particularly competitive sector and faces some tough opponents in this sector. Its main current competitors are

Comcast Corporation

This company is an American media group and is also the leading American cable operator. Comcast also has interests in consumer electronics, television channels and movies following its acquisition of NBCUniversal.

AMC Networks

This company is another American media group that owns, among others, the American channels AMC, IFC, WE tv or Sundance Channel as well as the New York arthouse cinema IFC Center and the production company IFC Films.

The Walt Disney Company 

This American company was created in 1923 by Walt Disney and subsequently became the world's leading entertainment group. It is present both in the media with shows, television series, cinema, in the tourism and leisure industry and in the products derived from its productions.

Netflix 

This American multinational company is also active in the creative sector and specialises in the distribution and exploitation of film and television works through a platform dedicated to the video-on-demand service.

Hulu

Finally, this other subscription video-on-demand platform owned by Disney, which offers film and audiovisual content.


The major partners of Discovery

Of course, although Discovery has many adversaries in its sector, it can also count on the support of certain strategic allies. It regularly sets up partnerships, as these two examples show:

Starzplay

The company has signed a new partnership with Discovery and has expanded its live sports catalogue to include some of the region's most popular sports including football and cricket. As a result of the agreement, the GolfTV channel, which is part of Discovery Inc, will be available as a standalone channel on Starzplay for $9.99, while current and potential Starzplay subscribers will be able to enjoy the new addition for free for one year. The move follows the board's and sports leagues' recognition of the value of streaming platforms that allow fans to tune in to their favourite games whenever and wherever they want and from any device.

AOL

The AOL Group has also signed a strategic partnership with Discovery Communications. This partnership is designed to bring Discovery Channel short-form video with TLC, Animal Planet, Investigation Discovery, Science Channel, Military Channel to The AOL on Network's library of over 470,000 premium videos. As a result, content from Discovery's award-winning networks will be scheduled across all 14 channels on the AOL On Network and shared on the AOL On video hub.

UCI

Finally, following the creation of a new track cycling circuit by the UCI, or Union Cycliste Internationale, in 2019, Discovery and the UCI have partnered to launch a new world track cycling league, the first of which will take place during the 2021-2022 season. By strengthening its relationship as a long-term partner of the UCI, Discovery will use its global reach, extensive media platforms and promotional expertise to support the growth of cycling.

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Frequently Asked Questions

Where and how to buy Discovery shares?

Discovery shares can be purchased through a securities account or any other stock market account. It is also possible to invest in these stocks through derivatives such as CFDs or contracts for difference. These are offered by online brokers and allow you to speculate on assets or shares without having to buy them directly, either up or down.

Who are Discovery's largest shareholders?

Discovery Group Inc has a number of large institutional shareholders including The Vanguard Group with 10.1%, Capital Research & Management with 5.91%, Brahman Capital Corp with 5.25%, ClearBridge Investment with 5.05%, SSgA Funds Management with 4.78%, Laurion Capital Management with 3.99%, Meritage Group with 3.77%, Lone Pine Capital with 3.60%, Kensico Capital Management with 3.36% and Capital Research & Management with 3%.

Does the Discovery Group pay a dividend to shareholders?

No. Currently, the Discovery Group does not pay dividends to its shareholders. In addition, the company has never paid a dividend to its shareholders in previous years. This lack of dividend is due to the group's current strategy of reinvesting its profits in strategic operations or in improving its services.

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