Bank of America Downgrades Fox Corp Amid NFL Rights Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
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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See More
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- Strategic Shift: Netflix has shifted its focus from existing content libraries to original content, with last year's release of 'K-Pop Demon Hunters' becoming its most-watched film ever, amassing 325.1 million views, indicating success in its original content strategy.
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See More
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- Strategic Implications: By acquiring Roku, Fox aims to gain a stronger foothold in the streaming market, leveraging Roku's over 100 million active users and rapidly growing ad-supported streaming channel, which could enhance revenue when combined with Fox's Tubi network.
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See More
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- Investor Sentiment: Despite the theoretical appeal of the acquisition, investor skepticism may impact Fox's stock performance, leading analysts to recommend careful evaluation before making investment decisions.
See More
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See More
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- Strong Financial Performance: Despite the acquisition challenges, Netflix reported a 16% year-over-year revenue increase in Q1 2026, reaching $12.25 billion, surpassing analyst expectations, with GAAP diluted EPS at $1.23, significantly above the company's guidance and consensus estimates of $0.76-$0.79.
- Stable Future Outlook: Netflix maintained its full-year 2026 revenue guidance between $50.7 billion and $51.7 billion, with an operating margin projected at 31.5%, indicating resilience and growth potential despite acquisition setbacks.
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See More
