Key Stats for News Corp Stock
- Price Change: -7.1%
- Current Price: ~$23
- Advanced Model Target: $32
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What Happened?
News Corp (NWSA) tumbled 7.1% to close near $23 on Friday.
The selloff came despite the company reporting fiscal second-quarter revenue of $2.6 billion, which beat analyst expectations.
However, investors focused on the bottom line, where net income fell 21% due to higher costs in the book publishing and news media segments.
The market was also spooked by a downgrade from Zacks Investment Research, which cut the stock to “Strong Sell,” citing deteriorating earnings momentum.
Despite the profit pressure, the company’s Dow Jones segment continued to shine.
This segment delivered record digital advertising revenue, which rose 12% compared to a year earlier.
Analysts at Morgan Stanley have previously noted that the selloff ignores the underlying strength of the digital real estate business.
The TIKR Valuation Model suggests the reaction is excessive, maintaining a Target Price of $32.
This implies that the “Sum-of-the-Parts” value is significantly higher than the current share price.
See analysts’ growth forecasts and price targets for News Corp stock (It’s free!) >>>
Is News Corp Undervalued Today?
During the earnings call, CEO Robert Thomson defended the company’s performance, emphasizing the quality of their revenue mix.
He stated: “Our results demonstrate the durability of our diversified revenue streams… Dow Jones achieved its highest ever quarterly revenues.”
Thomson highlighted the resilience of their subscription model, noting: “Our ability to track potentially vulnerable subscribers is improving each passing month as is our ability to identify high usage subscribers.”
CFO Lavanya Chandrashekar addressed the pricing power within the digital segment.
She noted: “We did take pricing on digital new customers and on certain tenured customers… our ARPU has been improving at a healthy rate.”
Read the full News Corp Transcript on TIKR to see the 2026 Outlook >>>
According to TIKR’s Advanced Valuation Model, the stock is now trading at a deep discount to its intrinsic value.
- Target Price: $32
- Current Price: ~$23
- Potential Upside: +43.0%
Valuation Deep Dive
The investment case for News Corp is a “complexity discount” play.
With the stock trading at ~$23, the market is effectively valuing the news and publishing assets at zero.
This is because the stake in REA Group alone accounts for a huge portion of the market cap.
- The Digital Jewel: The Dow Jones segment continues to grow high-margin professional subscriptions.
- The Real Estate Hedge: Exposure to the Australian property market through REA Group provides a hedge against U.S. advertising cyclicality.
- The Value Gap: The $32 target implies that as the company continues to simplify its structure, the conglomerate discount will narrow.
If News Corp can stabilize margins in its legacy news business while letting its digital engines run, the path to $32 is supported by a breakup value that far exceeds today’s price.
Conclusion: Read all about it. With a 43.0% upside potential to $32, News Corp offers a deep value opportunity for patient investors willing to look past the headlines and own a collection of world-class media assets on sale.
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How Much Upside Does News Corp Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
