Warner Bros. Discovery has announced the development of agentic AI-powered advertising technology built on Amazon Web Services (AWS). The media company has selected AWS as its preferred cloud provider to support this new initiative.

The technology leverages agentic AI capabilities to enhance advertising processes. By building on AWS, Warner Bros. Discovery aims to utilize the cloud provider's infrastructure to scale its advertising solutions.

Strategic Partnership

The collaboration with AWS underscores Warner Bros. Discovery's strategy to integrate advanced cloud computing and artificial intelligence into its advertising operations. AWS serves as the foundational cloud platform for the deployment of these AI-driven tools.

Michael Burry, the investor famed for his role in 'The Big Short', used Warner Bros. Discovery Inc to illustrate a market phenomenon where stocks continue to fall even after becoming undervalued. In a post on X, Burry argued that a stock can decline so significantly that it becomes detached from the underlying business reality, a pattern he said applies to Warner Bros. Discovery. The commentary underscores the risks and potential rewards for value investors holding through sharp downturns.

Burry described a hypothetical scenario where a stock falls from 100 to 10, a 90% decline, before an investor buys in believing it is worth 30. Instead of recovering immediately, the stock continues to fall to 5, leaving the investor down 50%. Burry stated that this detachment from business value is almost exactly what occurred with Warner Bros. Discovery.

According to Burry, investors who hold through such declines can benefit from a rebound. He noted that an investor who bought at 5 and saw the stock recover to 30 would realize a sixfold gain from the bottom. However, he acknowledged that many investors exit before the recovery occurs, selling at levels like 8 or 5 as the decline deepens.

The recovery in Warner Bros. Discovery did not take a decade, Burry added, noting that such rebounds often happen faster than expected. Shares of the media giant are down about 8% year-to-date but have rallied roughly 150% over the past 12 months.

Burry's comments arrive as Paramount Skydance Corp cleared a major regulatory hurdle in its proposed $110 billion acquisition of Warner Bros. Discovery. The U.S. Department of Justice approved the deal last week, signaling no major antitrust concerns. Shares of WBD fell 0.15% on Thursday at $26.20 and declined an additional 0.31% in extended trading.

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