Is News Corporation Stock Underperforming the S&P 500?

With a market cap of $16.1 billion, News Corporation (NWSA) is a global, diversified media and information services company, specializing in creating and distributing engaging content, products, and services for consumers and businesses worldwide. It owns leading platforms such as The Wall Street Journal, realestate.com.au, and Foxtel, catering to industries ranging from news and entertainment to property and financial services. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and News Corporation fits this criterion perfectly. News Corporation leverages its vast portfolio to deliver authoritative content and innovative solutions across various media channels.

Shares of the New York-based company have declined 6.8% from its 52-week high of $31.66. The stock has gained nearly 20% over the past three months, exceeding the S&P 500 Index’s ($SPX) 3.9% rise during the same period.

News Corporation's shares have soared 13% on a YTD basis, slightly lagging behind the SPX's 13.5% gain. Over the past 52 weeks, the stock has fallen 4.2%, compared to the 16% return of the SPX over the same period.

Yet, NWSA stock has been trading above its 200-day moving average since late July.

News Corporation shares rose 1.6% on Aug. 5 after the company reported better-than-expected Q4 2026 revenue of $2.34 billion and adjusted EPS nearly doubled year-over-year to $0.35. The strong performance was driven by 7% growth in Dow Jones revenue and a 19% increase in digital real-estate services revenue, highlighting the benefits of News Corp’s shift toward digital-first businesses. Investor sentiment was further supported by its AI strategy, including content relationships with OpenAI and Meta and advanced discussions with several other technology companies, positioning the company to benefit from growing AI-content licensing demand.

In comparison, rival Fox Corporation (FOXA) has lagged behind NWSA stock on a YTD basis, with FOXA stock falling 11.1%. However, FOXA stock has gained 4.1% over the past 52 weeks, outpacing NWSA stock.

Despite the stock’s underperformance over the past year, analysts remain bullish about its prospects. NWSA stock has a consensus rating of “Strong Buy” from eight analysts in coverage, and the mean price target of $36.76 suggests a premium of 25.3% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.