Fox Corp. Falls as Trump Blasts Fox News Over Disloyalty

Fox Corp. shares fell after President Trump blasted Fox News on Twitter for showing inadequate loyalty to him.
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Fox Corp.  (FOX) - Get Report shares fell Thursday, after President Trump blasted its Fox News TV station on Twitter for showing inadequate loyalty to him.

“@Fox News daytime ratings have completely collapsed. Weekend daytime even WORSE. Very sad to watch this happen, but they forgot what made them successful, what got them there. They forgot the Golden Goose. The biggest difference between the 2016 Election, and 2020, was @FoxNews!” Trump tweeted. 

Trump also retweeted, “Fox has been completely unfair and untruthful. Moving to Newsmax,” a conservative news service.

Until Trump’s defeat in last week’s election, Fox had shown great deference to the president, but Trump more recently has criticized the station's reporting. And Fox was the first news outlet to call Arizona for Joe Biden in the presidential election, which rankled the president.

Fox shares recently traded at $25.65, down 5.5%. They have fallen 29% so far this year.

Morningstar analyst Neil Macker offered positive commentary on Fox Corp. after its earnings report last week. 

“Fox started off fiscal-year 2021 on strong note, as first-quarter revenue and Ebitda both beat FactSet consensus projections,” he wrote.

“The cable division remains the main driver behind profits, though the broadcast segment also posted strong Ebitda growth, despite flat revenue. Fox News made history once again as the first cable channel to be the number one overall network in weekday primetime ratings for an entire quarter.”

To be sure, “the return of live sports, especially the National Football League and college football, only partially benefited Fox during the quarter, and any shutdown of either of those sports would have a large impact on the firm,” Macker said. 

“We are maintaining our narrow-moat rating and our fair-value estimate of $37.”