Fox News Downgraded by Major Wall Street Bank Over Viewership Issues

Contact Your Elected Officials
The Epoch Times Header

A top financial services company downgraded Fox Corporationโ€™s stock on Monday, noting issues with the networkโ€™s viewership, earnings, and content.

An analyst with Wells Fargo downgraded shares of Fox Corp. from โ€œequal weightโ€ to โ€œunderweight,โ€ lowering the price target from $35 per share to $31 per share, according to multiple reports on Monday.

โ€œFox News is the FOXA cash cow at [around] 80 percent of our FY24E EBITDA,โ€ Steven Cahall, with Wells Fargo, wrote, referring to the acronym for earnings before interest, taxes, depreciation, and amortization. โ€œViewership is down -19% Jan-Juneโ€™23 vs Jan-Juneโ€™21 due to cord cutting and/or programming.โ€

Mr. Cahall added that โ€œmore worryingly, Fox News was 52 percent of cable news primetime viewership for 2020-22, 51 percent in Janโ€™23, and that has slid to a low of 38 percent in Juneโ€™23 post-TC,โ€ reported Investing.com. โ€œ[Fox Newsโ€™] share of conservative news viewers has fallen from 94 percent to 84 percent.โ€

Fox News is worth about $11 billion, or about five times its earnings before interest, depreciation, and amortization (EBITDA), he wrote. Thatโ€™s down from a previous estimate of six times, he said, noting that there are worries of a โ€œstructural declineโ€ in overall cable news viewership across the board due to cord-cutting and demographics.

Other issues cited by Mr. Cahall included talent departure and increasing competition. โ€œWe are also not convinced that cable news works well in streaming, so our 8 percent view on annual cord-cutting presents ongoing earnings risks,โ€ he said, Seeking Alpha reported.

There are also broader industry challenges ahead for Fox Corporation, the analyst said.

โ€œFox gets about 50 percent of fiscal year 2023 and 2024 estimated revenue from U.S. affiliate feesโ€”among the highest in our media coverage universe,โ€ Mr. Cahall pointed out. โ€œWe estimate 7-8 percent cord-cutting, with a downside bias.โ€

And he warned: โ€œFox Cable could soon go ex-growth on EBITDA like weโ€™ve seen for peer linear nets. TV has better topline growth, but less ability to reduce costs due to sports rights.โ€

Byย Jack Phillips

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

AI is Now an Existential Threat

We now see evidence that artificial intelligence is an existential threat to our future. It is coming to take American jobs!

With or without

The mullahs of Iran have been at war with the West, particularly the US, for half a century and Iran is also the worldโ€™s foremost champion of terrorism.

Artificial Intelligence Equals Awful Iniquities

WSJ article โ€œAI is Learning to Escape Human Controlโ€ said in 79 of 100 trials, the o3 AI code systems edited their own code to prevent human shutdown!

VIDEO: Deranged Feminist vs. Mating Ducks in Epic Public Meltdown

A middle-aged white lady lib harasses mating ducks to โ€œstop it!โ€ because the rough sex they enjoy appears non-consensual on the part of the female.

RFK Jr. Slashes ALL U.S. Funding For Bill Gatesโ€™ Global โ€˜Vaccine Allianceโ€™

Robert F. Kennedy, Jr. recently pulled all U.S. government funding from Bill Gatesโ€™ Global โ€˜Vaccine Allianceโ€™ GAVI.

Musk Again Wades Into Politics, Calls GOP Bill โ€˜Insane and Destructiveโ€™

โ€œThe latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!โ€ Musk wrote in a Saturday post on X.

Nevada Seen as Case Study in Rapid Urban Sprawl Amid a Water Crisis

Nevadaโ€™s rapidly growing population has reached a critical intersection with the regionโ€™s worsening water crisis, according to experts.

US Streamlines Rule for Fining Illegal Immigrants, Will Issue Nearly $1,000 Daily Fines for Noncompliance

DHS and DOJ announced a new joint federal rule that streamlines the process of issuing fines for illegal immigrants, making it easier and more efficient.

Man Indicted on 12 Hate Crime Charges in Attack on Boulder Demonstration for Israeli Hostages

Boulder, CO man accused of hurling Molotov cocktails at demonstrators supporting Israeli hostages indicted by grand jury on 12 hate crime counts.

Canada-US Trade Talks Will End Until โ€˜Certain Taxesโ€™ Are Dropped, Trump Stresses

Trade discussions between Canada and the United States will end โ€œuntil such time as they drop certain taxes,โ€ U.S. President Trump said in an interview.

Trump Says US to Send Tariff Letters to Trade Partners Before July 9 Deadline

President Donald Trump said Sunday he will soon send letters to trading partners detailing the tariffs to be imposed on their exports to the United States.

Trump Says He Found a Buyer for TikTok

President Trump said he found a buyer for the Chinese-owned short video application TikTok, and that he will reveal the group in roughly two weeks.

Termination of โ€˜Wasteful Contractsโ€™ Saves US Government $470 Million Last Week: DOGE

Over the past seven days, various government agencies have terminated 312 โ€œwasteful contractsโ€ with a ceiling value of $2.8 billion, the DOGE said.
spot_img

Related Articles