Why FOX (FOXA) Shares Are Plunging Today

What Happened?

Shares of cable news and media network Fox (NASDAQ:FOXA) fell 5.4% in the morning session after the company announced the pricing of a large secondary offering of its Class B common stock tied to a resolution within the Murdoch Family Trust. The offering consists of nearly 16.9 million shares sold by trusts for Prudence MacLeod, Elisabeth Murdoch, and James Murdoch, who will no longer be beneficiaries of any trust holding FOX shares. This move is part of a settlement of legal proceedings within the family. The offering was priced at $54.25 per share, and the selling stockholders will receive all proceeds; Fox Corporation itself is not selling any shares or receiving any funds. Secondary offerings of this size can put downward pressure on a stock's price by increasing the supply of shares available on the market, which concerns investors about potential dilution and reflects a large sale by significant stakeholders.

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What Is The Market Telling Us

FOX’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock gained 5.5% on the news that the company reported strong third-quarter earnings that blew past analysts' sales and EPS expectations. 

The topline benefited from a 6% year on year growth in affiliate revenue, largely driven by a 10% growth in the Television business. The advertising business did even better, growing 11% year on year due to higher political advertising revenues at FOX Television. This highlights FOXA's ability to optimize its ad inventory, given the audience growth powered by its relatable content during the election season. Other relevant factors explaining the improved growth include higher ratings and pricing, growth at Tubi (FOXA's streaming platform), and the impact of sports revenues such as broadcasts of the UEFA European Championship and CONMEBOL Copa América. Zooming out, we think this was a solid quarter. The broad-based sales improvement flowed to the bottom line as the company's EBITDA exceeded Wall Street's expectations. Overall, this was a strong quarter, highlighting significant improvements across the board.

FOX is up 20.7% since the beginning of the year, and at $59.13 per share, it is trading close to its 52-week high of $62.48 from September 2025. Investors who bought $1,000 worth of FOX’s shares 5 years ago would now be looking at an investment worth $2,097.

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