Key Takeaways
- Fox is up 29% since June 30. That’s the best result among the nine stocks Stanley Druckenmiller’s Duquesne Family Office bought or added to in the second quarter.
- His other big buys have trailed it, with CDW up 20%, Amazon up 14%, Insmed up 12% and Revolution Medicines up 3% since the quarter’s end.
- Fox trades at 12x forward earnings, close to its five-year average of 11x, and analysts expect its earnings per share to keep growing through the fiscal year ending June 2027.
- It isn’t too late to follow him into Fox, though its $22 billion Roku deal is the biggest thing to watch.
Stanley Druckenmiller’s next 13F is due by Nov. 16. Before it comes out, it’s worth checking how his last round of buys has done, and the standout is Fox (FOXA), up 29% since June 30.
His Duquesne Family Office’s 13F for the quarter ended June 30, filed Aug. 14, shows $4.35 billion of US stocks across 86 positions. That’s still the latest look at what he owns, and it’s more than four months old.
Fox was brand new to the fund
Duquesne held 2.20 million Fox shares worth $115 million at June 30. That was 2.6% of its US stocks and its 11th-largest position, and it owned none at the end of March. On June 15, Fox agreed to buy Roku for $96 in cash plus 0.9693 of a Fox Class A share for each Roku share, a deal valued at about $22 billion. The 13F doesn’t show whether Duquesne bought before or after that announcement, what it paid, or whether it still owns the shares, so the 29% is the stock’s move since quarter-end, and the fund’s own return could be higher or lower.
TIKR tracks 21 analysts on Fox. How many say “Buy”?
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His other buys have lagged Fox
Fox is the best of the nine stocks Duquesne bought or added to in the quarter, and most of the rest are up too. CDW (CDW), the other new position, is up 20%, helped by a 14% jump on an AI-fueled earnings beat earlier this month. Duquesne held 743,950 CDW shares worth $105 million, plus call options with a notional value of $35 million.
Amazon (AMZN) is up 14%. Duquesne held almost 13 times as many Amazon shares at June 30 as three months earlier (541,600 shares worth $129 million), plus calls with a notional value of $109 million. AWS grew 39% in the third quarter and its backlog reached $578 billion, which Phillip Securities cited when it upgraded the stock to Buy.
Insmed (INSM), the fund’s fourth-largest position at 3.5% of its US stocks, is up 12%. Duquesne held 1.42 million shares worth $152 million, 23% more than at March 31, plus calls with a notional value of $144 million. Insmed jumped 12% in late October after Brinsupri brought in about $400 million in the third quarter, but it’s still 43% below its 52-week high.
Revolution Medicines (RVMD) is up 3%. Duquesne grew that stake 27% to 399,587 shares, worth $75 million at June 30. Not every buy worked, though: Alphabet, another of the nine, is down 20% since June 30.
Analysts expect Fox to keep growing
Fox’s earnings have climbed fast, and analysts expect more in the fiscal year ending June 2027:
Normalized EPS rose 58% in two years, from $3.43 in fiscal 2024 to $5.42 in fiscal 2026, and the consensus calls for $6.10 in fiscal 2027. Analysts then expect a dip to $5.84 in fiscal 2028. I suspect that’s the election calendar, since fiscal 2027 includes this month’s midterm ad spending and fiscal 2028 has no November election.
And even after the run, Fox isn’t expensive against its own history. At 12x forward earnings, it trades a touch above its five-year average of 11x, and well below the 17x it reached in January:
Not too late, as long as Roku works out
Wall Street has raised its targets as well. Twenty analysts cover Fox, with targets from $60 to $125, and their average rose from $70.80 in early July to $79.91, 19% above Tuesday’s close:
The Roku deal is the big risk. Fox would pay about $14.2 billion in cash plus new Class A shares, a big bet for a company with a market value of about $37 billion. The Justice Department has been reviewing the deal since a second request on Sept. 8, though it’s reportedly close to clearing it, and both companies expect to close in the first half of 2027.
I don’t think it’s too late to follow Druckenmiller into Fox. It trades near its usual multiple, analysts expect its earnings to keep growing, and the Street sees 19% upside from here. The bargain price is gone, though, so from here the gains have to come from earnings growth and from Roku paying off.
His next 13F, due by Nov. 16, will show us whether Duquesne still held Fox at Sept. 30. And once the Justice Department rules on Roku, investors will know what kind of company they’re buying.
So what is Fox stock actually worth?
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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 of the stocks mentioned. Thank you for reading, and happy investing!
