Discovery, Inc.

Discovery, Inc. (NASDAQ: DISCA) is a global media company that distributes content through a variety of platforms, including pay television, free-to-air television, and broadcast television, as well as authenticated GO applications, digital distribution agreements, content licensing agreements, and direct-to-consumer (DTC) subscription products. 

Key Highlights

• The company reported YoY growth of 24% in net revenues to USD 12.19 billion in FY21 (ended December 31, 2021) compared to USD 10.67 billion in FY20.
• However, due to increased operational expenses, DISCA's net income reduced to USD 1.20 billion during FY21 vs. USD 1.36 billion in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 3.91 billion and total debt of USD 15.01 billion.
• DISCA's FY21 cash cycle of 43 days is significantly higher than the industry median of 19 days.
• Its ROE was 9.1% in FY21 vs. the industry median of 15.3%.
• DISCA announced on March 11, 2022, that the Company's investors had accepted several things connected to AT&T's acquisition of WarnerMedia to form Warner Bros.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 21.66 to USD 78.14.
• DISCA's stock price decreased 11.09% and 21.93% in the past six and nine months, respectively.

Technical Price Chart (as of March 14, 2022, at 02:03 PM ET). Source: REFINITIV, Analysis by Kalkine Group

Conclusion: Considering the topline growth, decline in profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 24.06, up 0.25%, as of March 14, 2022, 02:03 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Virgin Galactic Holdings, Inc.

Virgin Galactic Holdings, Inc. (NYSE: SPCE) is an aerospace company focused on developing, manufacturing, and operating spacecraft and related technologies for commercial human spaceflight and commercial research and development payloads in space.

Key Highlights

• The company reported YoY growth of 1,283.19% in net revenues to USD 3.29 million in FY21 (ended December 31, 2021) compared to USD 238 thousand in FY20.
• SPCE's net loss reduced to USD 352.90 million during FY21 vs. USD 644.89 million in FY20.
• As of December 31, 2021, the company had cash and cash equivalents of USD 524.48 million and total debt of USD 79.42 billion.
• Its ROE was -49.7% in FY21 vs. the industry median of 5.7%.
• On February 15, 2022, SPCE, an aerospace and space travel firm, said today that overall public ticket sales will begin on February 16, enabling the opportunity to purchase one of the initial spaceflight reservations and secure membership in the exclusive community of Future Astronauts.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 7.05 to USD 57.51.
• SPCE's stock price decreased 72.11% and 81.46% in the past six and nine months, respectively.

Technical Price Chart (as of March 14, 2022, at 02:34 PM ET). Source: REFINITIV, Analysis by Kalkine Group

Conclusion: Considering the topline growth, long-term profitability issues, lackluster financials,  technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 6.765, down 7.14%, as of March 14, 2022, at 02:34 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.