FOXA Should I Buy
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Fox Corp is not a strong buy for a beginner, long-term investor at this moment. Despite positive analyst ratings and some potential for short-term price recovery, the company's financial performance shows declining profitability, and technical indicators suggest a bearish trend. The options data also indicates bearish sentiment. It would be prudent to wait for stronger financial performance or a clearer upward trend before considering an investment.
The MACD is negative and contracting, RSI indicates the stock is oversold at 14.323, and moving averages are converging. The stock is trading near its support level (S1: 56.434), but the overall trend remains bearish.
Analyst ratings remain positive overall, with multiple firms raising price targets following strong Q2 results. Fox's focus on live news and sports content provides relative strength in a challenging pay-TV market. The company's partnership with the U.S. government on the 'Trump Accounts' program may enhance its public image.
Declining net income (-38.61% YoY), EPS (-35.80% YoY), and gross margin (-3.46% YoY) in Q2 2026 indicate weakening profitability. Wells Fargo and Barclays have downgraded their price targets, citing cost concerns and limited upside. Technical indicators suggest a bearish trend, and options data reflects bearish sentiment.
In Q2 2026, revenue increased by 2.05% YoY to $5.18 billion. However, net income dropped by 38.61% YoY to $229 million, EPS fell by 35.80% YoY to 0.52, and gross margin declined by 3.46% YoY to 22.91%. This indicates weakening profitability despite revenue growth.
Analyst sentiment is mixed but leans positive. Several firms, including Citi, UBS, and Goldman Sachs, maintain Buy ratings and have raised price targets, citing strong advertising performance. However, Wells Fargo and Barclays have downgraded their targets due to cost concerns and limited upside.
