Fox Corp Continues to Soar Amidst Political Ad Spending Surge
Shares of Fox CorpFOXA have surged over 8% in the last month as the whirlwind of the U.S. presidential election campaigns picks up pace.
While spending on primary ads has been lackluster, all eyes are on the potential record-breaking leap in 2024 presidential election ad expenses, as predicted by Seaport Research Partners.
President Joe Biden is gearing up to unleash over $30 million in ads, sourced from the $155 million war chest his re-election campaign held at the end of February.
Former President Donald Trump, along with the Republican National Committee, pulled in a staggering $65.6 million in March alone. The politically embattled figure, despite facing legal challenges, eyes a further $33 million windfall at an upcoming April 6 fundraising event.
The Fox Analyst: In a move reflecting surging confidence in Fox Corp, David Joyce upgraded its rating from Neutral to Buy, maintaining a steady price target of $37.
The Fox Thesis: MAGNA Global estimates that political ad spending may soar to $9 billion this year, potentially triggering a 15% to 20% year-on-year growth in the third and fourth quarters of 2024. Joyce hinted at these promising numbers in the recent upgrade.
“In the Television division, ad revenue could see an uptick of +11.6% and 13.2% in the collective first and second quarters of 2025 (F1Q25 & F2Q25) – encompassing Broadcast Network, TV Stations, and Tubi,” noted the analyst. Joyce pointed out that the lion’s share of political ad spending traditionally flows towards local TV stations.
Joyce highlighted the continued vigor in Fox’s sports division, with resurgent viewer interest in flagship properties like NASCAR and MLB. The analyst commended the company’s robust financial position, enabling sustained healthy returns for shareholders.
FOXA Price Action: At the time of writing, Fox’s shares showed a marginal dip of 0.06%, hovering at $31.12 on a lively Friday trading session.
Image: Shutterstock
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
