- Company to lay off 5% staff or 1250 employees.
- The last earnings date was on February 9, 2023, and the street did not like it.
News Corp., the media and information service company, was formed on June 28, 2013, and headquartered in Midtown Manhattan, NY. It works in the creation and distribution of content and other services. The conglomerate operates through Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media etc.
The company’s sales dropped by 7.2% to $2.52 billion in the fourth quarter, while the earnings before taxes, depreciation and amortization fell by 30% to $409 million. They recently announced earnings on February 9, 2023.
Billionaire Rupert Murdoch’s News Corp. announced that they would reduce their staff by 5% or 1250 employees this year. This step is because of tenacious inflation and steep rise in interest rates. The employees would be laid off from Wall Street Journal, publisher HarperCollins, The Sun newspaper in the UK and The Times. Annual savings due to this would be nearly $130 million.
At the time of writing, it was trading at $18.81, dropping 9.78%. The previous close was $20.85, and the opening was $19.66. The fifty-two-week range is from $15.15 to $23.97, meaning that the rate is near the lower end of the spectrum. The market cap is strong at $10.738 billion; the volume was at 1.40 million shares, and the average volume was 846,888.
There is a healthy short interest with 2.18% float sold short, and the P/E ratio is 23.51. The profit margin is only 2.94%, while the operating margin of 7.24%. The company’s revenue is $10.17 billion, and revenue per share is $17.44. The year-over-year quarterly revenue growth is negative 7.20%.
Sadly the earnings expectations were not at par with the street; hence the chart shows a noticeable gap down. However, the chart swings upward, and the gap hints that the price would move to the demand zone.
However, the demand zone is also the strong support; this could be a make-or-break point for the price. If it manages to bounce back up, it will consolidate for a bit before moving further up, providing some buying opportunities. But if it breaks from there, there is a possibility that the price could shrink further.
Although it’s a long shot, prices tend to fill the gaps after some time; if this happens and a piece of good news strikes along, a rally can be expected.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/02/11/news-corp-nws-sales-down-7-2-layoff-5-staff-recuperation/