Fox Shares Beat Nasdaq Recently but Lag Over One Year

Fox Corporation’s Class B shares have lagged the Nasdaq Composite over the past year, even after a sharp recent rally. Barchart data showed FOX up 6.1% over 52 weeks through September 22, compared with a 19.8% gain for the index.

The shorter view tells a different story. Over the three months to September 22, Fox gained 23.3%, while the Nasdaq Composite rose 2.3%. That contrast makes the comparison depend heavily on the period investors choose.

Fox shares also remained below their 52-week high of $68.18, reached January 6. Barchart reported the stock was 15.1% below that peak, despite trading above its 50-day and 200-day moving averages since August.

A strong fiscal fourth quarter helped fuel the rebound. Fox reported August 6 that revenue rose 28% year over year to $4.21 billion for the quarter ended June 30. Adjusted earnings were $1.79 a share, up from $1.27 a year earlier.

The company attributed much of the revenue growth to advertising, which climbed 78%. Fox said the increase reflected its FIFA Men’s World Cup broadcast and continued digital growth led by free streaming service Tubi. Higher sports rights and production costs, including World Cup expenses, partly offset the revenue gain.

Those results show how event-driven advertising can lift Fox’s results, but they do not erase the longer-term gap with the index. The Nasdaq’s broader technology-heavy mix also gives investors a different set of growth drivers than a media company built around news, sports and advertising.

Investors will watch whether Fox can sustain digital growth and turn major sports broadcasts into durable advertising gains. The company has also announced a planned acquisition of Roku, which Fox says will change its growth profile. That deal and the costs of sports programming will help shape whether the recent share-price momentum lasts.