Fox Corporation: A Defensive Growth Machine in the Streaming Wars

The media landscape is in flux, but one name stands out as a hidden gem in this era of cord-cutting and ad-supported streaming: Fox Corporation (NASDAQ: FOXA). While rivals scramble for relevance, Fox is quietly building a margin-resilient powerhouse with two unstoppable engines—Tubi's viral growth and Fox One's imminent launch—while weathering macroeconomic storms better than most. Let's break down why this is a BUY NOW for investors seeking both safety and explosive upside.

The Tubi Transformation: A 35% Growth Engine

Tubi, Fox's ad-supported video-on-demand (AVOD) platform, isn't just growing—it's dominating. In its latest quarter, Tubi delivered 35% year-over-year revenue growth, fueled by its 200 million monthly users and a killer demo: 40% of its audience is aged 18-34, the holy grail for advertisers. The Super Bowl LIX livestream was a masterstroke, luring 24 million unique viewers and 8 million new registered users, proving Tubi's ability to turn events into long-term engagement.

This isn't a fluke. Tubi's first-party data and programmatic ad capabilities let Fox charge premium rates without cannibalizing local station revenue. And here's the kicker: incremental costs are minimal since Tubi piggybacks on Fox's existing content library. With a clear path to $1 billion in annual revenue, Tubi is now a $1B+ cash cow in the making—and that's before Fox One even launches.

Fox One: The Next Frontier in Streaming

While Tubi targets the free AVOD crowd, Fox One—Fox's new subscription service aimed at cord-cutters—is set to launch imminently. This isn't a random experiment: it's a strategic play to capture the 24 million households abandoning traditional pay TV. Fox One will leverage Fox's deep content library (think National Geographic, Fox News, and 20th Century Studios hits) at a price point that undercuts Netflix and Disney+.

Crucially, Fox isn't wasting money here. Unlike Netflix's cash-burning model, Fox is deploying disciplined capital allocation, using its $1.9 billion free cash flow to fuel growth without overextending. Tubi and Fox One aren't just separate services—they're synergistic ecosystems. Tubi's free users will be upsold to Fox One, while Fox One's subscribers can access Tubi's ad-supported content for deeper engagement.

Margin Resilience in a Volatile Landscape

While cable companies bleed from affiliate fee declines, Fox is a margin machine. The Television segment's EBITDA rose 6% last quarter, even as expenses jumped due to Tubi's growth investments. How? Fox is trimming fat in legacy areas while pouring resources into high-margin digital assets.

Political ad spending also plays to Fox's strength. During the Q2 earnings call, management highlighted that Tubi's ad revenue grew 31% without any political lift—a sign of organic demand. Meanwhile, local stations' political ad revenue surged, creating a double win. This cross-platform synergy is rare in media, and it's why Fox's margins remain rock solid despite macro headwinds.

The Investor's Playbook: Why This Is a Buy Now

Here's why FOXA is a prime play:
1. Diversified Revenue Streams: Tubi's AVOD growth offsets declines in linear TV.
2. Defensive Yet Aggressive: Margin resilience meets explosive digital expansion.
3. Underappreciated Catalysts: Fox One's launch and Tubi's $1B revenue milestone are valuation game-changers.
4. Undervalued: At just 11x forward EV/EBITDA, Fox trades at a discount to peers like Disney (14x) and Paramount (13x).

Bottom Line: Don't Blink—This Is a Must-Buy

Fox Corporation isn't just surviving—it's redefining media dominance. With Tubi's viral growth, Fox One's imminent launch, and margins that laugh at macro fears, this stock is a rare blend of safety and scalability. The market hasn't priced in Tubi's $1B milestone or Fox One's disruptive potential. Act now—or risk watching this play unfold without you.

—Jim

Disclosure: This is not financial advice. Consult your advisor before investing.