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Why Is FOX Stock Down Today?

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  • Fox (FOX) stock is in focus as it cuts ties with one of its top hosts, Tucker Carlson.
  • The move comes just days after the company agreed to a $787.5 million settlement with Dominion Voting Systems.
  • Initially, shares fell 5% on the news as the stock hit its lowest level since Jan. 19.
FOX stock - Why Is FOX Stock Down Today?

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Fox (NASDAQ:FOX) is making headlines today after it cut ties with Tucker Carlson, one of its most popular but controversial hosts. Shares of FOX stock initially fell about 5% on the news, which broke around 11:30 a.m. Eastern. Now though, shares are currently down about 3% on the day.

The news comes less than a week after settling a major lawsuit between Dominion Voting Systems and Fox News. Dominion was awarded $787.5 million in the settlement, which was reached right before having to head to court.

While there’s no specific link between Tucker Carlson’s departure and the lawsuit, it has many speculating whether they are related. At this time, the network hasn’t commented on why exactly it severed ties with Carlson, but a recently released New York Times piece suggests it was for “promoting a hostile work environment.”

Carlson hosted one of Fox’s top rated-programs, and it’s unclear who will permanently replace his spot in the lineup. According to the network, Fox News Tonight, a new temporary replacement show “will be hosted by a rotation of various Fox News Personalities.”

Fox isn’t the only news company to abruptly part ways with a prominent news anchor on Monday. CNN also announced that it will be cutting ties with Don Lemon. Warner Bros Discovery (NASDAQ:WBD) is down about 2% on the news.

What Does This Mean for FOX Stock?

Investors are unsure what to make of the Tucker Carlson news so far. While the market is obviously not interpreting the news as bullish, FOX stock isn’t exactly collapsing either.

That said, shares were hitting multi-month lows today, trading at the lowest level since Jan. 19. Fox stock was down in four straight trading sessions coming into Monday, although all the declines have been less than 0.6% before today’s fall.

Where it goes from here is unclear.

The one-two punch of settling the lawsuit and losing Carlson certainly are not positive developments for the company. With a $16.8 billion market capitalization, a settlement north of three-quarters of $1 billion is no small sum. However, at least the damage is apparent.

In the case of Tucker Carlson, the situation is not as clear. If Fox continues garnering sizable network viewership in that time slot, it will likely be “business as usual.” However, if instead, those views bleed over to other networks — or follow Carlson onto his next endeavor — then Fox stock may struggle in the quarters ahead.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-fox-stock-down-today/.

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