Bank of America Downgrades Fox Corp Amid NFL Rights Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
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Should l Buy FOX?
Source: seekingalpha
Fox Corporation's shares rose by 5.02% as it crossed above the 5-day SMA, despite the broader market decline with the Nasdaq-100 down 1.26% and the S&P 500 down 0.53%.
Bank of America downgraded Fox Corporation from 'buy' to 'underperform' due to concerns over the company's exposure to the upcoming NFL rights renewal. The downgrade reflects worries about traditional media's negotiating power against well-funded tech companies, which could dilute earnings potential. Additionally, BofA cut the price target for Fox from $80 to $45, indicating a potential downside of 11.5%.
This downgrade highlights the challenges Fox faces in maintaining profitability amid changing market dynamics. Investors may need to reassess their positions in light of these developments, especially with the ongoing pressures in the media sector.
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Analyst Views on FOX
About FOX
Fox Corporation produces and distributes news, sports, and entertainment content through its primary domestic brands, including FOX Sports, Tubi Media Group, FOX Entertainment and FOX Television Stations. Its operating segments include Cable Network Programming, Television, Credible and the FOX Studio Lot. Cable Network Programming produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors (virtual MVPDs) and other digital platforms. Television produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, approximately 29 full power broadcast television stations, including 11 duopolies, and other digital platforms. The FOX Studio Lot provides television and film production services. Credible is a United States consumer finance marketplace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Revenue Drop: The company's revenue for the third quarter fell to $3.994 billion, down 8.6% from $4.371 billion last year, highlighting the direct impact of a sluggish advertising market on its top line.
- Market Reaction: With both profit and revenue declining, Fox Corporation's stock price may face pressure, prompting investors to closely monitor future market strategies and plans for growth recovery.
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- Live Webcast Access: Investors can access the live webcast by logging onto the investor relations section of Fox Corporation's website, ensuring transparent information dissemination and effective communication with stakeholders.
- Investor Interaction Opportunity: This earnings call serves not only as a platform for financial data release but also allows investors to ask questions, enhancing interaction between the company and its shareholders and fostering confidence in the company's future prospects.
- Market Reaction Expectations: While specific details of the earnings report remain undisclosed, the market is keenly focused on Fox's performance in advertising revenue and streaming services, which is expected to have a notable impact on its stock price.
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See More
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- Profit Decline: Fox Corporation reported a third-quarter net profit of $166 million, or $0.38 per share, which represents a significant drop from last year's $346 million and $0.75 per share, indicating mounting profitability pressures.
- Adjusted Earnings: Excluding special items, Fox reported adjusted earnings of $570 million, or $1.32 per share, which, while lower than last year, still reflects a degree of profitability amidst challenging conditions.
- Revenue Drop: The company's revenue for the third quarter fell to $3.994 billion, down 8.6% from $4.371 billion last year, highlighting the direct impact of a sluggish advertising market on its top line.
- Market Reaction: With both profit and revenue declining, Fox Corporation's stock price may face pressure, prompting investors to closely monitor future market strategies and plans for growth recovery.
See More
Media Companies Optimistic About Ad Sales Amid Industry Changes
- Ad Spending Recovery: Media companies report no significant pullbacks in ad spending during discussions with advertisers, indicating a strong recovery in market confidence despite previous economic uncertainties, which suggests a gradual return to pre-COVID levels of activity.
- Focus on Live Content: With fewer major sporting events, media firms are emphasizing live content, particularly NFL games, which are expected to draw larger audiences and boost ad revenues, reflecting a strategic shift towards high-value programming.
- Mergers and Consolidation: Warner Bros. Discovery's ongoing merger with Paramount, expected to close in Q3, aims to enhance content library depth and market competitiveness, which could drive advertising sales growth in a consolidating industry.
- AI Empowerment: Media companies are leveraging artificial intelligence to improve data analytics capabilities, enabling advertisers to better understand viewer behavior and optimize ad strategies, highlighting the growing importance and potential of technology in the advertising sector.
See More
Media Giants Pitch Advertisers with Focus on Sports and AI Integration
- Optimistic Ad Market: Despite ongoing global economic uncertainties, advertising executives report no significant pullback in overall ad spending, with a continued demand for sports and live content, indicating strong market confidence for the future.
- Attraction of Sports Content: Companies like NBC, Disney, and Warner Bros. are set to highlight their sports programming, particularly major events like the NFL, which are expected to draw larger audiences and boost ad revenues, reflecting the significance of sports content in advertising strategies.
- AI Technology Utilization: Media companies are leveraging artificial intelligence to enhance the ad buying experience by enabling faster data collection and analysis, helping advertisers more effectively assess ad performance and maintain competitiveness in an uncertain market environment.
- Industry Consolidation Trend: The ongoing merger talks between Warner Bros. and Paramount are indicative of accelerated industry consolidation, with content investment becoming a key driver that is expected to reshape the advertising market landscape and enhance overall content quality.
See More
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- Live Webcast Access: Investors can access the live webcast by logging onto the investor relations section of Fox Corporation's website, ensuring transparent information dissemination and effective communication with stakeholders.
- Investor Interaction Opportunity: This earnings call serves not only as a platform for financial data release but also allows investors to ask questions, enhancing interaction between the company and its shareholders and fostering confidence in the company's future prospects.
- Market Reaction Expectations: While specific details of the earnings report remain undisclosed, the market is keenly focused on Fox's performance in advertising revenue and streaming services, which is expected to have a notable impact on its stock price.
See More
Fox to Announce Q3 Earnings on May 11
- Earnings Announcement Date: Fox Corporation is set to announce its Q3 earnings on May 11 before market open, with consensus EPS estimate at $1.08, reflecting a 1.8% year-over-year decline, and revenue estimate at $3.81 billion, down 12.8% year-over-year.
- Historical Performance: Over the past two years, Fox has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, indicating strong financial performance and market confidence.
- Estimate Adjustments: In the last three months, EPS estimates have seen no upward revisions and two downward revisions, while revenue estimates have experienced ten upward revisions and four downward revisions, highlighting market divergence regarding future performance.
- Market Focus: Fox has chosen Amazon AWS as its preferred AI cloud provider and partnered with Kalshi to integrate prediction market data across media platforms, showcasing its strategic focus on technological collaboration and innovation.
See More
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- Advertising Presentation Schedule: Next week, the media world will converge in New York, with NBCUniversal, Fox, Amazon, Disney, and others showcasing their NFL programming, which is expected to solidify trends observed last year, particularly with NFL Commissioner Roger Goodell's attendance at both YouTube and Netflix events.
- Value of NFL Programming: NBCU will highlight the value of 'Sunday Night Football,' the most-watched show on U.S. television for the past 15 years, while Fox will showcase its NFL programming's highest ratings since 2015, averaging 19.63 million viewers last year.
- ESPN's Digital Subscription Success: Disney reported that revenue from ESPN's digital subscription service has more than offset losses from traditional cable cancellations, although the sports segment's operating income is expected to decline by 14% year-over-year due to rising programming fees, potentially leading to a price increase for ESPN Unlimited.
- NFL and Streaming Partnerships: Netflix and YouTube will leverage the NFL to demonstrate their growing influence in sports and live programming, with plans to acquire four games from the NFL Network and possibly add an additional game, while Netflix aims to renew its Christmas game deal with the NFL.
See More
