What happened
Shares of media company Fox Corporation (NASDAQ:FOXA) (NASDAQ:FOX) jumped on Monday. The stock had risen 8% by the time the market closed.
The stock's rise was likely primarily driven by a rebound in the overall market during the trading day. But analyst commentary may have helped, too; one analyst reiterated an outperform rating for the stock on Monday.
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So what
Highlighting optimism in the overall market on Monday, the S&P 500 rose more than 3% as stocks continued rebounding from a sharp drop in late February and early March. Fox's gain on Monday likely similarly reflects a bounce higher from a big sell-off in its own shares. Even when including the stock's gain on Monday, shares of the media giant are still down 37% since Feb. 19.
Separately, Credit Suisse analyst Douglas Mitchelson lowered his price target for Fox stock on Monday but reiterated an outperform rating. The lowered price target reflects an expectation for adverting revenue and subscriber trends to take a hit amid the coronavirus pandemic. Mitchelson's updated $37 12-month price target, down from $45 previously, still implies more than 50% upside.
Now what
There's a lot of uncertainty around advertising spend as many companies have been hurt by travel restrictions and stay-at-home orders. Investors should look to Fox's next quarterly update to see how the pandemic is affecting the company.
