Fox Corp Stock Soars on JPMorgan Upgrade

Fox Corp's Class A shares experienced a notable increase in pre-market trading after JPMorgan upgraded the media company to Overweight. This upgrade was underpinned by several key factors, including the company's robust underlying performance and favorable economics derived from the FIFA World Cup.

JPMorgan's revised stance also considers the anticipated positive impact of the pending acquisition of Roku. Furthermore, an encouraging political advertising environment and improvements in distribution revenue contributed to strengthened expectations for Fox's earnings trajectory heading into fiscal 2027.

The upgrade followed Fox's release of stronger-than-expected fiscal fourth-quarter results. Adjusted earnings per share of $1.79 significantly surpassed the analyst consensus of $1.45, and revenue saw a substantial 28% year-over-year increase to $4.21 billion, exceeding market forecasts.

Advertising revenue was a standout performer, jumping 78%, largely driven by coverage of the FIFA Men's World Cup. This highlights the significant value of major live sporting events to Fox's advertising business. Additionally, Fox's streaming platform, Tubi, achieved a record of 110 million monthly active users and recorded its strongest quarterly revenue growth to date.