Analyst Note
| Neil Macker, CFA |Discovery posted a strong end to 2020 as fourth-quarter revenue and adjusted EBITDA beat FactSet consensus projections despite the ongoing impact of the pandemic on ad spending. Despite the struggles at the traditional business, investors appear to be focused on the streaming business as the firm launched Discovery+ in January. We are maintaining our narrow moat and expect to substantially raise our fair value estimate to account for the faster streaming growth and stronger bounceback from the pandemic impact on ad revenue.