Please ensure Javascript is enabled for purposes of website accessibility

Why Fox Corporation Stock Jumped on Monday

By Daniel Sparks - Updated Mar 30, 2020 at 3:33PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst thinks the media company's shares could surge 50% from here.

What happened

Shares of media company Fox Corporation (FOXA 0.19%) (FOX 0.27%) jumped on Monday. The stock had risen 8% by the time the market closed.

The stock's rise was likely primarily driven by a rebound in the overall market during the trading day. But analyst commentary may have helped, too; one analyst reiterated an outperform rating for the stock on Monday. 

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Highlighting optimism in the overall market on Monday, the S&P 500 rose more than 3% as stocks continued rebounding from a sharp drop in late February and early March. Fox's gain on Monday likely similarly reflects a bounce higher from a big sell-off in its own shares. Even when including the stock's gain on Monday, shares of the media giant are still down 37% since Feb. 19.

Separately, Credit Suisse analyst Douglas Mitchelson lowered his price target for Fox stock on Monday but reiterated an outperform rating. The lowered price target reflects an expectation for adverting revenue and subscriber trends to take a hit amid the coronavirus pandemic. Mitchelson's updated $37 12-month price target, down from $45 previously, still implies more than 50% upside.

Now what

There's a lot of uncertainty around advertising spend as many companies have been hurt by travel restrictions and stay-at-home orders. Investors should look to Fox's next quarterly update to see how the pandemic is affecting the company.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fox Corporation Stock Quote
Fox Corporation
FOXA
$36.50 (0.19%) $0.07
Fox Corporation Stock Quote
Fox Corporation
FOX
$33.75 (0.27%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.