What Can Drive A 10% Downside To News Corp’s Stock In The Next Year?

There could be a downside of over 10% to our price estimate for News Corp in the next few years if U.S. print media spending falls at a faster than expected pace, owing to the industry-wide shift from print to digital media. Moreover, there is a likelihood that News Corp’s share of the print ad market will fall further as it shifts its focus to digital real estate. This in turn would affect its news and information segment revenues negatively. The table below shows what would drive that downside.

Have more questions about NWSA? See the links below:

• How Has News Corp’s Revenue & EBITDA Composition Changed Over The Past 5 Years?
• How Has News Corp’s Revenue And EBITDA Changed In The Last Five Years?
• What’s News Corp’s Revenue And Gross Margin Breakdown By Segment?
• What Is News Corp’s Fundamental Value Based On Expected 2016 Results?
• What Drove News Corp’s Revenue And EBITDA Growth In 2015?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for News Corporation.