In the case of News Corp., there was no shortage of obvious weaknesses. Publishing revenue from once-reliably profitable newspapers like The Wall Street Journal cratered 14% to $2.02 billion. Filmed entertainment tanked too.
Preparing to spin publishing assets off into their own reeling entity, News Corp. also took a $2.9 billion write-off. Even apart from that, pickings were slim. Revenue stumbled 7% to $8.37 billion, short of expectations.
Amid all this self-evident gloom, though, the object of greater curiosity might be: What went right? Presumably, something must have. And maybe -- just maybe -- examining what went right will be instructive for the long term, though not necessarily in a positive way.True, a company can, at least in theory, build on what went right. But if what went right is possibly imperiled, well, look out below. From AP to CNNMoney, most media outlets spent the bulk of their space surveying the damage at News Corp. By the time they made their way to the (one) positive -- that the company's cable networks saw a 26% rise in profits -- they did not mention that cable companies, while increasing paid channels and products to push near-term profits, are struggling to maintain subscriber counts. Viewers, with a myriad of options, are starting to cut the cable cord. In other words, News Corp.'s only division to post an increase in profits is facing a considerable cultural and technological headwind. Analyzing the positive at News Corp. points toward more probable negativity. At the time of publication, Fuchs had no positions in any of the stocks mentioned in this column. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV