NWSA: Bearish Downtrend – Time to Consider Puts?

No relevant news was found for this stock today.

NWSA's technical outlook is decidedly bearish. The stock price has experienced a significant downtrend over the past 90 days, falling from approximately $30.00 in late June to $25.785 as of November 4th. The price is now below its 50-day SMA of 28.38 and its 21-day EMA of 26.85, confirming the downward momentum. The MACD is negative at -0.616, and trending further downwards from its signal line, indicating continued bearish momentum. The RSI of 37.29 suggests the stock is not yet oversold, leaving room for further declines. The STOCH %K is at 43.89, and the %D at 46.24, neither of which suggest an imminent reversal. The ADX at 27.72 indicates a strong trend, further supporting the bearish outlook. The recent price action confirms a clear downtrend, with no signs of reversal, suggesting further weakness in the coming 1-3 months.

News Corp's fiscal year 2025 earnings call projects a moderately bullish outlook, driven by strong performance in key segments and a commitment to returning capital to shareholders. The company reported a record year for profitability, with revenues rising 2% to nearly $8.5 billion and total segment EBITDA improving 14% to over $1.4 billion. CEO Robert Thomson highlighted a 'sterling performance sustained across the 4 quarters,' emphasizing the company's transformation and focus on Dow Jones, Digital Real Estate Services, and Book Publishing. The Board authorized a new $1 billion stock repurchase program, signaling confidence in the company's valuation and future prospects. Dow Jones showed robust growth, with revenue up 4% for the year and 7% in Q4, driven by a 10% increase in the Professional Information Business. Digital Real Estate revenues rose 9% for the year, with Realtor.com showing growth despite a sluggish U.S. housing market. CFO Lavanya Chandrashekar reiterated the commitment to 'equity shrinkage' and maintaining financial flexibility for reinvestment. While Book Publishing experienced softness in recent months, key titles are expected to positively impact fiscal 2026. The company is actively pursuing AI licensing deals, recognizing the importance of protecting intellectual property.

NWSA's financial performance exhibits a fluctuating pattern over the reported quarters. Revenue initially grew from $2499M in Q1 2024 to $2577M in both Q4 2024 and Q4 2024, before declining to $1628M in Q4 2025. The `grossProfitRatio` has been highly variable, starting at 1 and plummeting to -4.19 in the most recent quarter, indicating a significant deterioration in profitability. Operating cash flow has been inconsistent, with the most recent quarter showing $32M, a steep decline from $539M in Q3 2024 and $359M in Q2 2024. Total debt has decreased from $4158M in Q1 2024 to $2866M in Q4 2025, which is a positive sign. Net income also shows volatility, with a high of $743M in Q4 2025 and a low of $30M in Q1 2024. The negative gross profit and inconsistent cash flow, despite a decrease in total debt, suggest potential challenges for NWSA's near-term financial health.

The company presents a moderately bullish investment profile based on its key metrics and financial ratios. Revenue has shown positive growth, indicating market traction, although the pace has slowed somewhat. Profitability, as reflected in the gross margin, remains healthy and consistent. The Return on Equity (ROE) suggests reasonable efficiency in generating profit from shareholder equity. The Price-to-Earnings (P/E) ratio indicates the stock is trading at a premium, but this may be justified if future growth expectations remain strong. The Debt-to-Equity ratio is relatively stable and manageable, suggesting a balanced approach to leverage. The Current Ratio indicates the company has adequate liquidity to meet its short-term obligations. Overall, the company demonstrates a positive trajectory with a solid foundation, but investors should monitor revenue growth trends and valuation multiples to ensure they remain aligned with the company's performance.