It’s hard to imagine today that when the awful twin towers terrorist attack occurred back in 2011 NWS was arguably the most influential stock on the ASX, today it rarely gets even a mention! Yesterday saw the media giant hit a 52-week low with sentiment not being helped by its 61.4% majority stake in REA Group (REA) falling 48% since November 2021 – we currently see no compelling reason to buy NWS and if / when we want to buy REA the direct route makes far more sense.
Media goliath NWS tested new 1-year lows yesterday probably in sympathy with the weakness across US digital advertising / social media names in the wake of Snap Inc’s (SNAP US) more than 40% plunge – we see no reason to buy NWS around $23.50, the stocks not offering compelling valuation or an attractive dividend although its likely to bounce this morning in line with a minor recovery by its US peers overnight.
Media Group NWS have more than doubled since the panic COVID-19 lows, in its recent company report we saw revenue improve across all its businesses compared to last year and EBITDA rip up by 40%.
News Corporation is a media and information services company. The Company's business is comprised of news and information, book publishing, digital real estate, and cable network programming services. News serves customers globally.