Warner Bros. Discovery stock falls amid a second-quarter revenue miss

Yahoo FInance's Allie Canal breaks down second-quarter earnings for Warner Bros. Discovery.

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DAVE BRIGGS: Warner Brothers Discovery has released its second quarter earnings amid swirling rumors of job cuts, restructuring of HBO Max, and so many other things to discuss with Allie Canal. Allie, what are we seeing from earnings?

ALEXANDRA CANAL: Thanks, Dave. Yeah, I'm seeing a miss on revenue, 9.82 million versus the expected 11.91 billion. Ended Q2 with 92.1 million global direct to consumer subscribers. That's an increase of 1.7 million versus the 19.4 million subscribers at the end of Q1. Now, studios reported revenues of 2.79 million. There was also adjusted EBITDA that came in at 239 million.

But I think the number one thing that investors are going to want to know is what's the deal with HBO Max. We got the report yesterday that they are slashing jobs, about 70% of that development team. What does that mean for the future of HBO Max originals? There's also rumors that it will be merging with Discovery. It's widely expected that during the earnings call, we're going to get a little bit more color on the strategy there.

Now, that being said, we did see some programming updates from Warner Brothers Discovery earlier today on the heels of that earnings report. They said they would be adding the Magnolia channel, some programming there from Chip and Joanna Gaines. In addition, they will have a CNN hub on Discovery+.

So that just goes to show that if there is a merger, it's not going to be happening anytime soon. For now, HBO Max and Discovery+ will be separate here. But if we take a look at shares, they're reacting negatively right now, down over 3%.