News Corporation (NWSA), based in New York, is a global media and information services company with diverse business interests, with a market cap of $15 billion. It operates in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. Its brands encompass notable names like The Wall Street Journal, The Times, and HarperCollins.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and NWSA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the entertainment industry. The company's diversified business model spans media, book publishing, digital real estate, and subscription services, reducing risks while driving multiple revenue streams.
Despite its notable strength, NWSA has slipped 7.4% from its 52-week high of $28.62, achieved on Jul. 16. Over the past three months, NWSA stock has dipped 1.3%, underperforming the Dow Jones Industrials Average’s ($DOWI) 7.6% gains during the same time frame.
In the longer term, shares of NWSA rose 7.9% on a YTD basis and climbed 34.6% over the past 52 weeks. In contrast, DOWI is up 11.8% on a YTD basis and has returned 24% over the last year.
While NWSA has been trading mostly above its 200-day moving average since the past year, it has been trading under its 50-day moving average since early September.
NWSA shares jumped 2.9% after the company released its Q4 earnings on Aug. 8. The company wrapped up fiscal year 2024 with solid results, reporting a 5.9% rise in fourth-quarter revenue, reaching almost $2.6 billion, thanks to strong performances in its book publishing, digital real estate services, and Dow Jones divisions. For fiscal 2025, the company highlighted its collaboration with OpenAI and its focus on digital growth and cost optimization.
Fox Corporation (FOXA), News Corporation’s chief competitor, has climbed 31.3% over the last 52 weeks, slightly lagging behind NWSA. However, FOXA's impressive YTD gain of 38.6% in 2024 outperforms NWSA’s modest single-digit increase.
Wall Street analysts are highly bullish on NWSA’s prospects. The stock has a consensus “Strong Buy” rating from the six analysts covering it, and the mean price target of $35.80 suggests a potential upside of 35.1% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
