News Corp’s stock price has pulled back over the past few months, falling from a high of $31.59 in August to the current $29.12. The retreat has coincided with broader weakness in the US stock market, with the S&P 500 and Dow Jones both well below their year-to-date highs.
Will the NWSA stock rebound as its earnings approach and as President Trump’s case against the Wall Street Journal comes to an end?
News Corp is one of the biggest media companies in the world. It owns brands like the Wall Street Journal, Barron’s, MarketWatch, and Investor’s Business Daily. These brands are part of the Dow Jones business. It also owns HarperCollins Publishers, Realtor.com, REA Group, and several media brands from Australia and the United Kingdom.
The News Corp stock will be in the spotlight after a US judge tossed a $10 billion frivolous lawsuit brought by President Donald Trump. Trump sued the Wall Street Journal after it published a letter allegedly sent to Jeffrey Epstein. In her statement, Judge Darrin Gayles said that the suit runs counter to the First Amendment, which protects freedom of press.
A $10 billion victory for Trump would be a major setback for the company, which has a market value of over $15 billion. As such, in theory, the judge’s decision suggests that the stock will rally on Monday.
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In reality, however, the ruling may prompt only a mild reaction, since most analysts expected the lawsuit to end soon. Few expected the judge to award the full $10 billion. At worst, the WSJ could have chosen to settle, as other companies have done in the past.
The next important catalyst for the News Corp stock is the upcoming earnings report, which will provide more hints on its business. The last report showed that the company’s revenue rose by 11% in the fourth quarter to $2.34 billion, helped by its digital real estate services, book publishing, and Dow Jones. Its annual revenue jumped by 7% to $9.03 billion, with its free cash flow reaching $811 million.
Analysts expect the upcoming report to show that its revenue rose by 5.54% in the first quarter to $2.26 billion. Its earnings-per-share (EPS) is expected to move to 26 cents from 22 cents in the same period last year.
NWSA stock chart | Source: TradingView
The daily chart shows that the News Corp stock has pulled back in the past few weeks. It has slumped below the 50-day moving average and the 23.6% Fibonacci Retracement level.
The stock has also formed a double-top pattern, a common bearish reversal sign in technical analysis. Therefore, these patterns suggest that the stock may continue falling as sellers target the key support level of $27.9. A drop below that level will point to more downside, potentially to the 50% retracement level of $26.9.
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