Fox News' stock drops following post-Tucker viewership drop
Fox Corporation's stock was downgraded Monday as the network's viewership numbers have dropped following Tucker Carlson's departure.
The stock change following a wave of changes in the wake of the network's shift to fill the slot of their former top program.
The Post-Tucker Blues: Fox News Stock Downgraded as Viewership Nosedives 🤣🤣 https://t.co/q6eLbom7F1
— Patricia Dickson (@Patrici15767099) July 11, 2023
The drop
"Fox News was 52% of cable news primetime viewership for 2020-22, 51% in Jan’23 and that has slid to a low of 38% in June ’23 post-Tucker Carlson," the report noted.
"Fox News’ share of conservative news viewers has fallen from 94% to 84%. While the new primetime lineup could drive a rebound, we think Fox News is a Show Me viewership story," it added.
FOX NEWS STOCK DOWNGRADED: Wells Fargo analysts downgraded Fox Corporation stock, citing risks concerning news, earnings, and viewership. MORE: https://t.co/Q0NLTnTRCL pic.twitter.com/Tgr6rkFKsX
— NEWSMAX (@NEWSMAX) July 11, 2023
Other factors
"Fox has also been suffering as cord-cutting has viewers canceling cable or satellite subscriptions and choosing less-expensive streaming options," Newsmax reported.
"Seeking Alpha reported that analyst Steven Cahall said he believes Fox News has an enterprise value of roughly $11 billion. He values it five times EV/EBITDA, down from a previous estimate of six times due to worries of a 'structural decline' in cable news viewership from cord-cutting and demographics, as well as worries about talent departure and increased competition," it added.
'Going to leave a mark': Fox Corporation suffers steep stock drop after Tucker Carlson's abrupt exit https://t.co/Xn4a5y4XcN
— #TuckFrump (@realTuckFrumper) April 24, 2023
A concerning trend
The drop in Fox Corporation's stock can be clearly tracked back to April when Carlson left Fox News.
"In the wake of Tucker Carlson's abrupt exit from Fox News, class A shares for the network's parent company Fox Corporation slid 4.7 percent," in April following the announcement of Carlson's departure.
"Matthew Tuttle, the CEO and CIO of Tuttle Capital Management, told Bloomberg that Carlson’s exit is 'definitely going to leave a mark on Fox,'" Raw Story added.
Carlson has since announced a new version of a program directly to Twitter. He is also scheduled to host the first GOP presidential forum, though former President Donald Trump is not scheduled to participate.
The network has made its decision and now it's paying the price. The new lineup is expected to help Fox News bounce back but it's unclear for now whether it will return to its numbers once held under Carlson's program.
