News Corp launches California Post amid market volatility
News Corp's stock fell 6.61% as it hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 2.36% and the S&P 500 down 1.54%.
The decline in News Corp's stock comes despite the recent launch of its new daily tabloid, California Post, which aims to expand its presence on the West Coast. CEO Sean Giancola expressed confidence in readership growth, indicating strong market demand for the publication. However, the overall market sentiment remains cautious, influenced by recent volatility in tech stocks and economic uncertainties.
This launch represents a strategic move for News Corp, positioning itself to capture a larger audience in California during a significant year for the state. However, the stock's performance reflects the challenges faced by the media industry amid broader economic pressures.
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- Price Target Adjustment: Morgan Stanley has lowered its price target for News Corp (NWSA) from $38 to $32.40 while maintaining an Overweight rating, indicating a cautious outlook on the company's future performance.
- Earnings Update: This adjustment follows the update of FY26 first-half results, and despite the price target reduction, Morgan Stanley asserts that its fundamental positive thesis remains unchanged, suggesting continued optimism about News Corp's long-term potential.
- Earnings Expectations: News Corp reported a Q2 adjusted EPS of 40 cents, exceeding market expectations of 37 cents, demonstrating the company's resilience in the current economic environment.
- Buyback Plan: News Corp outlines a $1 billion share buyback plan for 2025, which is expected to enhance investor confidence and boost EPS, reflecting the company's proactive approach to capital management.
- Significant Revenue Growth: News Corporation reported Q2 revenue of $2.4 billion, a 6% increase year-over-year, with total segment EBITDA rising 9% to $521 million despite a one-time inventory charge at HarperCollins, reflecting ongoing improvements in revenue and profitability that bolster confidence in future growth.
- Accelerated Buyback Program: The company repurchased $172 million in shares during the second quarter, up $132 million from the previous year, indicating a commitment to maximizing shareholder value while maintaining financial flexibility, which further strengthens market confidence.
- Strong Digital Real Estate Performance: Realtor.com saw a 10% revenue increase to $143 million, while Dow Jones revenue rose 8% to $648 million, showcasing the company's success in digital transformation and expected continued revenue growth in the future.
- Optimistic AI Revenue Outlook: Management highlighted a $1.5 billion payout agreement with Anthropic, expected to generate significant revenue for HarperCollins, further advancing the company's strategic positioning in AI, despite challenges in the advertising market, while focusing on enhancing cost efficiencies.
- Earnings Beat: News Corp reported a Q2 non-GAAP EPS of $0.40, exceeding expectations by $0.03, which reflects ongoing improvements in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved $2.36 billion in revenue for Q2, a 5.4% year-over-year increase that surpassed analyst expectations by $60 million, indicating effective sales strategies and competitive positioning in the market.
- Strong EBITDA Performance: Total segment EBITDA reached $521 million, a 9% increase from $478 million in the prior year, showcasing successful cost control and operational efficiency, thereby strengthening its financial foundation.
- One-Time Write-Off Impact: The results included a $16 million one-time write-off primarily related to inventory at HarperCollins’ international operations, yet the overall performance still demonstrates strong growth potential.
- Earnings Beat: News Corporation reported a Q2 non-GAAP EPS of $0.40, exceeding expectations by $0.03, which reflects ongoing improvements in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved revenues of $2.36 billion, a 5.4% year-over-year increase, surpassing analyst expectations by $60 million, indicating strong performance in advertising and subscription services that solidifies its market position.
- Positive Market Reaction: Following the earnings beat, the market reacted positively, with expectations of a stock price increase, reflecting investor optimism regarding the company's future growth potential.
- New Product Launch: This week, News Corporation launched the California Post tabloid, aimed at expanding its market reach and attracting younger readers, which is expected to further diversify revenue streams and enhance brand influence.
- Investor Briefing Announcement: News Corp has announced it will host an Investor Briefing for Dow Jones on March 16, 2026, in New York City, starting at 4:00 PM EDT, showcasing the company's transformation into a powerhouse in news, enterprise data, and information services.
- Executive Participation: Chairman Lachlan Murdoch and CEO Robert Thomson will be joined by Dow Jones CEO Almar Latour and other leadership team members, emphasizing the company's growth strategy and financial profile during the presentation.
- Live Webcast Availability: The briefing will be available via a live view-only webcast on News Corp's investor website, with a replay accessible shortly after the event, ensuring that investors unable to attend in person can still receive the information.
- Company Overview: News Corp is a global, diversified media and information services company focused on creating and distributing authoritative content, with operations primarily in the United States, Australia, and the United Kingdom, covering news, digital real estate services, and book publishing.










