We recently published a list of 10 Advertising & Media Stocks That Could Tank If Recession Hits. In this article, we are going to take a look at where Fox Corporation (NASDAQ:FOX) stands against other advertising & media stocks that could tank if recession hits.
When recession strikes, the advertising and media sectors are the first ones to see a noticeable impact. Companies tend to reduce their advertising budgets when the going gets tough. As a result, media companies that rely heavily on advertising spending fail to hit their revenue targets. So, if investors want to look at red flags for recession, advertising and media stocks offer good insights.
While media companies across the board feel the heat of reduced advertising budgets, some companies tend to fare better. These are mostly the ones that have diversified their income streams to reduce reliance on advertising.
In this post, we look at stocks that are likely to struggle if ad spending goes down. To come up with our list of top 10 advertising and media stocks that could tank if recession hits, we only looked at stocks that had a market cap of at least $5 billion.
An artist at a sound stage surrounded by the latest equipment, creating content for the major cable network programming.
Fox Corporation (NASDAQ:FOX)
Fox Corporation (NASDAQ:FOX) is an entertainment, sports, and news company. It operates in Television, The FOX Studio Lot, Credible, and Cable Network Programming segments.
Fox Corporation (NASDAQ:FOX) recently announced the acquisition of Red Seat Ventures, a media company. Red Seat Ventures supports digital content and podcasts for creators like Megyn Kelly, Bill O’Reilly, and Tucker Carlson. This deal is all about investing in the growing creator economy, as Cheesbrough highlighted:
”It is one of the fastest growing media categories worldwide by measure of reach and influence, and consumers are increasingly looking to get insights and entertainment directly from the voices and brands they trust.”
The firm announced the launch of a direct-to-consumer service by the end of 2025. This service is designed for individuals who have never abandoned traditional TV cables. Lachlan Murdoch clarified that the service will be priced reasonably and won’t require extra rights costs. For 2025, Fox’s Tubi is anticipated to exceed $1 billion in revenue, fueled by its targeted advertising capabilities and large ad-supported video library. While this segment drives the company’s bullish thesis, a recession could spoil the company’s plans.
Overall, FOX ranks 3rd on our list of advertising & media stocks that could tank if recession hits. While we acknowledge the potential of FOX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FOX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
