NWSA Should I Buy
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News Corp (NWSA) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's recent AI content licensing deal with Meta provides a strong positive catalyst, and while financial performance shows mixed results, the revenue growth and gross margin improvement are promising for long-term prospects. Analysts maintain a positive outlook with Buy and Overweight ratings, and technical indicators suggest a stable price trend. Options data reflects a bullish sentiment with a very low Open Interest Put-Call Ratio of 0.01.
The MACD is positive and expanding (0.198), indicating bullish momentum. RSI is neutral at 62.558, and moving averages are converging, suggesting stability. Key resistance levels are at R1: 24.402 and R2: 24.812, with support at S1: 23.072 and S2: 22.662. The stock is trading slightly above the pivot point (23.737), indicating a potential upward trend.
The $50 million annual AI content licensing deal with Meta is a significant positive catalyst, ensuring stable revenue streams for at least three years. Analysts maintain a positive outlook with Buy and Overweight ratings.
Net income and EPS have declined YoY in the latest quarter, which could indicate potential profitability challenges. Insider and hedge fund trading activity is neutral, showing no strong conviction from key stakeholders.
In Q2 2026, revenue increased by 5.54% YoY to $2.36 billion, and gross margin improved slightly to 52.33%. However, net income dropped by 10.23% YoY to $193 million, and EPS declined by 10.53% to 0.34, reflecting some profitability concerns.
Citi lowered the price target to $39 from $40 but maintained a Buy rating. Morgan Stanley reduced the price target to $32.40 from $38 but reiterated an Overweight rating, citing no change to its fundamental positive thesis.
