Fox Corp’s Strategic Play: Event-Driven Dominance and Digital Resilience Fuel a Buy

The television industry is in decline, but Fox Corp (FOX) is defying the odds. While traditional TV viewership plummets, Fox’s fiscal Q3 results reveal a company thriving through event-driven advertising dominance and strategic digital diversification. A record-breaking Super Bowl LIX, surging Tubi AVOD ad revenue, and Fox News’s enduring strength have propelled a 65% jump in ad revenue—a stark contrast to a struggling sector. This is not a one-off win; it’s a blueprint for sustained growth. Here’s why investors should act now.

The Power of Must-Watch Events: Super Bowl LIX as a Growth Catalyst

Fox’s Q3 advertising revenue surged to $2.04 billion, shattering analyst expectations of $1.67 billion. The linchpin? The Super Bowl LIX telecast, which drew 127.7 million viewers—a record for a single-network broadcast. This event wasn’t just a ratings hit; it was a financial home run. Ads sold at record prices in a sold-out market, generating outsized revenue.

What makes this model sustainable? High-profile sports events like the Super Bowl are repeatable revenue engines. Fox’s deep ties to the NFL, combined with its ability to command premium pricing, ensure this isn’t a fluke. As Lachlan Murdoch, Fox’s CEO, noted, these events prove the company can “deliver for advertisers and audiences alike.” With $856 million in adjusted EBITDA (despite cost pressures), the core business remains robust.

Digital Diversification: Tubi and Fox News Counter TV’s Decline

While linear TV viewership shrinks, Fox is doubling down on multi-platform resilience. Its Tubi AVOD service—a free, ad-supported streaming platform—is a growth star. Tubi’s expanding audience and ad sales contributed to a 40% rise in TV segment revenue to $2.7 billion. Meanwhile, Fox News’s 11% revenue growth (to $1.64 billion) reflects its enduring dominance in political and breaking news—a key driver of ad demand.

This dual strategy is critical. Tubi captures younger, digital-native audiences, while Fox News retains loyal linear viewers. Together, they create a moat against cord-cutting, ensuring steady ad revenue streams.

Strong Cash Flow, Undervalued Stock: A Compelling Case for Buyers

Critics will point to Fox’s net income drop to $346 million—a 48% decline from last year. But this masks the reality: the hit came from non-operational costs, including sports programming amortization and Tubi’s scaling expenses. Free cash flow remains a priority, and Fox’s adjusted EBITDA margins (despite a slight dip) are a testament to its financial discipline.

Valuation-wise, FOX trades at just 9.7x forward EBITDA, below peers like Disney (13.5x) and CBS (10.2x). This discount ignores Fox’s growth tailwinds: Tubi’s expansion, Super Bowl-like events, and Fox News’s sticky audience.

Why This Isn’t a Fleeting Win: Fox’s Model is a Rare Growth Play

Fox Corp isn’t just surviving—it’s redefining TV’s future. Its combination of event-driven premium ad revenue, digital diversification, and cash flow focus makes it a standout in a shrinking sector. With Tubi’s user base growing and Fox News’s ratings holding steady, the company is primed to capitalize on both legacy and emerging trends.

The 65% ad revenue surge isn’t an anomaly; it’s a sign of things to come. Investors who buy now gain exposure to a rare growth story in a stagnant industry. With shares down 15% year-to-date despite these results, the risk-reward is compelling.

Final Take: Buy Fox Corp for Growth in a Declining Landscape

Fox Corp is proving that content kingship still matters. Its ability to command premium ad spend via must-watch events and build a digital moat positions it as a defensive yet growth-oriented stock. With strong cash flow, undervalued multiples, and a playbook that works, this is a buy for the next 12–18 months.

Act now: Fox Corp is a rare gem in a TV industry in decline.

Rating: Buy
Price Target: $45 (25% upside from current levels)