- Warner Bros. Discovery stock is outshining S&P 500 peers including Tesla and Meta, making a strong rebound in 2023.
- The media giant's stock has surged 64% so far this year thanks to the massive success of its video game, "Hogwarts Legacy."
- The Harry Potter-themed game has topped charts, reeling in $850 million in sales in the first two weeks since its launch.
Warner Bros. Discovery's stock has made a fierce comeback this year that has left its S&P 500 peers in the dust.
The media giant's share price has surged about 64% so far in 2023 after falling for the last three years, making it the best year-to-date performer among S&P 500 constituents. It's beaten popular stocks including Tesla, Meta and Amazon, which have risen 60%, 38% and 11% respectively since the start of January.
The strong rebound appears to be powered by the massive success of the highly anticipated Harry Potter-inspired video game, "Hogwarts Legacy." The company announced last Thursday that "Hogwarts Legacy" has already sold 12 million units so far, reeling $850 million in sales, in the first two weeks since its launch.
The game was already a top seller ahead of its release, in presales, beating other games like "Call of Duty: Modern Warfare II" and "Destiny 2," even as it faced backlash and calls to boycott it due to Harry Potter author J.K. Rowling's allegedly transphobic comments.
CEO David Zaslav said his company's hit video game business is now a "core part of our overall strategy."
"Hogwarts Legacy" is an action role-playing game set in the Harry Potter universe during the 1800s, a century before the events of the novels – and the player will play as a student at Hogwarts during that time.
At close on Friday, Warner Bros stock stood at $15.55 per share. It fell on the day after the company posted fourth-quarter revenue results that missed analysts' estimates.
Nevertheless, the entertainment company is powering ahead with new projects. It recently announced plans to make new "Lord of the Rings" films after striking a deal with Swedish gaming company Embracer Group, which currently owns the film rights to J.R.R. Tolkien's books.
