News Corp's stock plummeted 5.33% during pre-market trading on Friday, reflecting negative investor sentiment following the company's latest financial results.
The decline comes after News Corp reported a 21% year-over-year drop in Q2 net income from continuing operations to $242 million, despite revenue beating estimates. Analysts point to investor focus on competitive pressures in the AI space, specifically the rollout of Anthropic's Claude Cowork earlier this year, as a key catalyst for the sell-off.
While the company is reportedly establishing new AI partnerships and maintains an "overweight" rating from J.P. Morgan, the market reaction highlights concerns over profitability and the evolving competitive landscape in media and information services.