Fox Corporation (FOXA): A Bull Case Theory

We came across a bullish thesis on Fox Corporation on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on FOX. Fox Corporation's share was trading at $73.09 as of January 14th. FOX’s trailing and forward P/E were 16.42 and 16.50 respectively according to Yahoo Finance.

Tubi, owned by Fox Corporation ($FOX / $FOXA), ranked seventh among U.S. streaming platforms with a 2.1% share, slipping one position month-over-month as Paramount+ posted double-digit growth driven by NFL broadcasts and the return of its original series Landman. While the ranking change reflects competitive pressure rather than fundamental weakness, Tubi’s performance remains notable given its lack of traditional growth drivers.

After receiving a temporary boost from airing the Super Bowl in February, which pushed its share above 2%, Tubi has consistently maintained a low-2% share throughout the year. Its viewership grew 17% versus November 2024, though it was essentially flat compared to the prior month’s 2.2%, underscoring stability rather than volatility in engagement.

What makes Tubi particularly compelling is how it has achieved this scale without the levers typically relied upon by major streamers. The platform does not depend on recurring premium sports rights, nor does it have a single breakout franchise, original series, or film anchoring usage.

Instead, its growth has been driven by a broad, ad-supported content library and strong distribution, allowing it to quietly compound viewership while remaining capital efficient. Despite this, Tubi continues to be underestimated by the market and overlooked in broader streaming narratives.

Importantly, Tubi now commands a larger share of U.S. streaming viewership than Peacock at 1.9% and even the combined Warner Bros. Discovery streaming offerings, HBO Max and Discovery+, which together sit at approximately 1.3%. This relative positioning highlights the platform’s growing relevance and suggests that Tubi’s strategic value within Fox’s portfolio may be meaningfully underappreciated.

As streaming economics increasingly favor scale, engagement, and advertising efficiency over costly content spend, Tubi’s steady share gains reinforce its position as a durable and differentiated player with longer-term upside potential.

Previously, we covered a bullish thesis on Nexstar Media Group, Inc. (NXST) by Value Don’t Lie in April 2025, which highlighted its dominant local broadcast footprint, resilient free cash flow generation, disciplined buybacks, and regulatory-driven M&A optionality. NXST’s stock price has appreciated by approximately 18.89% since our coverage as the thesis played out. Simeon McMillan shares a similar view but emphasizes Fox’s ad-supported streaming scale through Tubi.

Fox Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held FOX at the end of the third quarter which was 43 in the previous quarter. While we acknowledge the potential of FOX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.