Fox News stock downgraded due to plummeting viewership without Tucker.

Fox News Faces Stock Downgrade and Plummeting Viewership

Since parting ways with ratings powerhouse Tucker Carlson in April, Fox News has been struggling to regain its footing. The consequences of this decision are becoming increasingly dire.

According to Wells Fargo analyst Steven Cahall, the cable news network’s stock has been downgraded and its price target lowered due to a significant decline in viewership following Carlson’s departure. Cahall’s analysis, reported by Yahoo Finance, highlights the negative impact on Fox Corp.’s earnings, which are heavily reliant on Fox News.

“Fox’s earnings are mostly Fox News earnings, and Fox News is facing viewership and share pressures. With ecosystem risks also elevated, we find our estimate outlook more negative and below the Street.”

Cahall’s note to clients explains that Fox News’ viewership fell by 19% from January to June compared to the same period two years ago. This decline, coupled with the rise of cord-cutting, has contributed to the downward spiral of the network.

It’s worth noting that when a stock is downgraded, analysts are pessimistic about its potential for market-beating returns. In this case, analysts have “underweight” Fox Corp.’s stock, indicating that it is a less attractive investment option compared to similar stocks in its sector.

The Impact of Tucker Carlson’s Departure

Tucker Carlson’s departure from Fox News has had a significant impact on the network’s viewership. As the cornerstone of Fox’s cable news dominance for years, Carlson’s show attracted an average of 3.03 million viewers per night in 2022. However, after his departure, ratings for the 8 p.m. time slot plummeted by 56%.

While Fox News scrambles to win back viewers, its viewership for Carlson’s former primetime spot remains subdued. The network is facing stiff competition as it tries to fill the void left by its former ratings kingpin.

Twitter Mocks Fox News’ Downfall

Fox News’ well-deserved downfall has not gone unnoticed on Twitter. Users have been quick to mock the network’s stock downgrade and declining viewership.

“More good news: Wall Street analysts have downgraded Fox Corporation stock (the parent company of Fox News) to ‘underweight’ — meaning you should sell it.” – Emerald Robinson

“Fox News dropped from 52% to 38% since Tucker left causing Wells Fargo to downgrade their stock.” – Americans#1st

These tweets reflect the sentiment among many viewers who have turned their backs on Fox News. The network’s chances of reversing this trend appear bleak for the foreseeable future.

Meanwhile, Tucker Carlson’s prospects for a robust comeback look promising. As he continues to dominate the competition, his loyal fan base eagerly awaits his next move.

Source: The Western Journal

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