Please ensure Javascript is enabled for purposes of website accessibility

Why Fox Corporation Stock Tumbled Today

By Chris Neiger - Updated Apr 30, 2020 at 11:57AM

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

Investors were focused on the latest jobless claims figures and the broader economic fallout.

What happened

Shares of media giant Fox Corporation (FOX 4.62%) (FOXA 3.97%) were falling today as investors processed more bad news stemming from the coronavirus pandemic. The broader stock market was reeling from the latest unemployment figures released today, and Fox's stock took a hit along with it.

Fox Corporation's stock was down 8% as of 11:41 a.m. EDT.

An orange line and bar chart on a black background.

Image source: Getty Images.

So what

Fox's shares, like many other companies', have been volatile over the past two months. The company's stock price is down nearly 19% since the beginning of March, far more than the broader S&P 500's 6% dip.

Fox Corporation's share price drop today likely stems from the latest U.S. jobless claims figures released this morning, which showed that an additional 3.8 million workers filed for unemployment benefits. This brings the total number of unemployment claims to 30 million over the past six weeks.

Fox's media empire isn't immune to overall economic weakness. With live sports nonexistent right now because of COVID-19, the company won't be able to sell advertising time during sporting events.

Now what

Investors can likely expect more volatility from Fox's stock over the coming weeks. The company will report its third-quarter 2020 results on May 6 and said in an SEC filing at the end of March that the COVID-19 pandemic will have a "material adverse effect" on the company's financial results.

Chris Neiger 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
$35.08 (3.97%) $1.34
Fox Corporation Stock Quote
Fox Corporation
$32.80 (4.62%) $1.45

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

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.