Investment Thesis

Fox Corporation (FOXA) is a BUY at current prices due to its resilient business model and strong positioning in the news and sports entertainment sectors. The market appears to undervalue FOXA’s growth potential from digital revenues and its established brand equity, particularly in a landscape increasingly shifting towards streaming and on-demand content. Despite the absence of a current P/E ratio, the anticipated rebound in advertising spend and the diversification into digital platforms suggest that FOXA could realize substantial upside, making it an attractive investment.

Competitive Moat

is durable over the next 5-10 years, as it is supported by the continued demand for live sports and the critical role of news in American culture. However, top competitive threats include the aggressive expansion of streaming platforms like Netflix and Disney+, which are capturing younger audiences and shifting viewing habits.

Growth Engine

Future revenue growth for FOXA will primarily stem from its digital transformation initiatives, particularly through Tubi, its ad-supported video-on-demand service, and its strategic partnerships in the sports content arena. The total addressable market (TAM) for streaming services is projected to expand significantly, creating opportunities for FOXA to capture new audiences and advertisers. The company is gaining market share in the digital space, leveraging its existing content library and live broadcasting capabilities to enhance user engagement and attract advertisers, driving organic growth.