We came across a bullish thesis on Fox Corporation on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on FOX. Fox Corporation's share was trading at $55.43 as of September 23rd. FOX’s trailing and forward P/E were 11.29 and 13.50 respectively according to Yahoo Finance. Copyright: wihtgod / 123RF Stock Photo Tubi, Fox Corporation’s wholly owned free, ad-supported streaming service (FAST), has demonstrated notable growth, with its viewership share reac ...

Core Insights - 9 Story Media Group has partnered with Future Today to launch the first-ever Scholastic-branded streaming app, available on Roku and Amazon Fire TV, providing families with a free and safe platform for on-demand access to Scholastic programming [1][3]. Company Overview - 9 Story Media Group is a leading creator, producer, and distributor of children's media, now part of the Scholastic portfolio, recognized for its digital content strategy and AVOD distribution [7]. - Future Today is a leader in ad-supported streaming media, managing top free channels across various OTT platforms and providing technology solutions for content owners [8][9]. Content Offering - The Scholastic app features over 400 hours of premium content from iconic titles such as "Clifford the Big Red Dog," "The Magic School Bus," and "Goosebumps," targeting children ages 2-12 and their families [2][3]. Strategic Goals - The app is part of Scholastic's broader strategy to expand access to its catalog of children's series, leveraging synergies from its investment in 9 Story [3]. - The collaboration aims to meet the strong demand for quality nostalgic content, ensuring families have access to trusted stories that entertain and educate [5].

Core Insights - Roku shares are currently trading at a premium with a Value Score of D, reflecting a price-to-cash flow ratio of 42.86X, which is above the industry average of 34.28X [2][10] - The company generated $310.1 million in operating cash flow over the trailing twelve months as of March 31, 2025, indicating strong cash generation capabilities [3] - Roku's strategic initiatives, including partnerships and hardware expansion, are expected to drive engagement and subscription growth [6][9] Subscription Growth and Partnerships - Roku is enhancing its subscription efforts with personalized features and a seamless billing system, leading to tens of millions of billed subscriptions each month [6] - In Q1 2025, Roku acquired Frndly TV, adding over 50 live and on-demand channels, and partnered with Apple TV+ to offer free trials, aiming to boost user engagement [7] - The company is focusing on ad-supported streaming through tech upgrades and partnerships, including a new collaboration with Amazon Ads, which has shown a 40% increase in unique reach for advertisers [12] Hardware Expansion - Roku launched its first Roku-made TVs in Canada, featuring QLED 4K models and various smart features, enhancing the streaming experience [8] - This move allows Roku to control both hardware and software, deepening user engagement and strengthening its international presence [9] Financial Performance and Market Position - The Zacks Consensus Estimate for Roku's 2025 loss is narrowed to 18 cents per share, with total revenues projected at $4.55 billion, indicating a year-over-year growth of 10.63% [13] - Roku shares have increased by 22.2% year-to-date, underperforming the industry growth of 30.9% but outperforming the consumer discretionary sector's return of 10.3% [14] - The company holds $2.26 billion in cash with no long-term debt, supporting innovation and operational needs [15] Competitive Landscape - Roku competes in a crowded ad-supported streaming market with major players like Netflix, Paramount Global, and Disney, which have seen significant user growth in their ad-supported tiers [11] - The company's strategic partnerships and tech-driven innovations are aimed at maintaining competitiveness in this rapidly evolving market [12] Conclusion - Roku's expanding subscription base, strategic hardware growth, and rising momentum in ad-supported streaming position the company for long-term success [19] - With strong fundamentals, zero long-term debt, and upward revisions in earnings estimates, Roku presents a compelling investment opportunity despite its premium valuation [19][20]

Core Insights - Disney's partnership with Amazon Ads aims to enhance advertising capabilities, but investors are advised to wait before purchasing shares [2][10] - The integration allows Amazon DSP access to premium inventory across Disney's platforms, improving ad targeting and revenue optimization [3][4] - The partnership is set to launch in Q3 2025, with significant revenue contributions expected only in fiscal 2026 [5][10] Financial Performance - Disney reported a 7% increase in revenues to $23.6 billion for Q2 fiscal 2025, with adjusted earnings per share growing by 20% [6] - The Entertainment segment showed strong performance, with operating income rising 61%, driven by Direct-to-Consumer results [6] - The streaming business is moving towards profitability, with operating income reaching $336 million and a total of over 180 million subscriptions across Disney+ and Hulu [7] Market Position and Competitive Landscape - The Zacks Consensus Estimate for fiscal 2025 revenues is $94.89 billion, indicating a 3.86% year-over-year growth [8] - Disney faces significant competition in the streaming market, with rising content costs and challenges in subscription growth [11] - The company's shares have returned 6% year-to-date, outperforming the Zacks Consumer Discretionary sector [12] Valuation and Investment Outlook - Disney trades at a P/E ratio of 19.25, below the industry average of 20.26, reflecting mixed fundamentals [10][17] - The traditional linear television business is declining, with mixed results in the Linear Networks segment and a 12% decline in operating income in the Sports segment [16] - Current shareholders are advised to hold their positions, while prospective investors may consider waiting for a better entry point in fiscal 2026 [19][20]

Core Insights - Roku and Paramount Global are competing in the ad-supported streaming market, with Roku showing stronger growth and performance compared to Paramount Global [1][2] Roku's Performance - Roku's ad-supported streaming business saw a 17% year-over-year revenue growth, reaching $881 million, driven by video advertising and streaming services distribution [3] - The Roku Channel became the 2 app on the Roku platform in the U.S. by engagement, with streaming hours increasing by 84% year over year [4] - Roku's advertising capabilities have improved through integrations with platforms like Adobe, and it has made TV advertising more accessible to small businesses via its self-service Roku Ads Manager [5][6] Paramount Global's Performance - Paramount's ad-supported streaming ecosystem showed mixed results, with Paramount+ global watch time per user increasing by 17% year over year, while Pluto TV achieved a 26% year-over-year increase in global viewing time [7] - The company is investing in premium originals and franchise extensions to enhance monetization, supported by expanding ARPU and lower churn [8] - However, direct-to-consumer advertising revenues declined by 9% year over year, primarily due to increased supply in digital video inventory affecting pricing, especially for Pluto TV [9][10] Stock Performance and Valuation - Roku's shares have returned 21.1% over the past month, outperforming both the Zacks Consumer Discretionary sector and the S&P 500 index [11] - In contrast, Paramount's shares gained only 8.8% over the same period, indicating underperformance [12] - Roku's price-to-cash flow ratio stands at 33.89X, significantly higher than Paramount's 11.92X, reflecting greater investor confidence in Roku's growth potential [13] Earnings Estimates - The Zacks Consensus Estimate for Roku's 2025 loss is 17 cents per share, with a projected revenue of $4.54 billion, indicating a year-over-year growth of 10.37% [16] - Conversely, Paramount's 2025 earnings estimate is $1.31 per share, revised downward by 19.63%, with projected revenues of $28.43 billion, suggesting a year-over-year decline of 2.67% [17] Investment Outlook - Roku is positioned as a stronger investment opportunity for 2025, with robust platform growth, innovative advertising tools, and increased engagement on The Roku Channel [18] - Paramount Global faces short-term challenges in digital advertising, with declining DTC ad revenues and market oversupply impacting sentiment [19] - Roku currently holds a Zacks Rank 2 (Buy), while Paramount has a Zacks Rank 5 (Strong Sell) [20]

Core Viewpoint - Roku is expected to report first-quarter 2025 results with total net revenues projected at $1.005 billion, reflecting a 14% year-over-year increase, driven by strong Platform revenue growth of 16% [1][8] Revenue Estimates - The Zacks Consensus Estimate for first-quarter revenues is set at $1 billion, indicating a year-over-year growth of 13.96% [2] - The consensus estimate for Devices revenues is $127 million, while Platform revenues are expected to reach $877 million [13] Earnings Expectations - Roku anticipates a total gross profit of $450 million and adjusted EBITDA of $55 million for the first quarter [1] - The consensus mark for loss is estimated at 20 cents per share, representing a year-over-year growth of 42.86% [2] Earnings Surprise History - In the last reported quarter, Roku achieved an earnings surprise of 45.45%, with an average surprise of 55.07% over the trailing four quarters [5] Factors Influencing Results - Platform growth remains robust, with management estimating a 16% year-over-year increase, supported by streaming services distribution and advertising activities [8] - However, Devices revenues and gross profit were impacted by increased seasonal discounting, leading to excess inventory and slight pressure on gross margins [7][10] Competitive Landscape - Roku faces intensified competition in the advertising space as major players like Netflix, Warner Bros. Discovery, and Disney expand their ad-supported streaming offerings [11] - The absence of political advertising compared to the previous quarter may have also tempered advertising momentum [8] International Expansion - Roku's international growth into markets such as Mexico, Canada, and the United Kingdom is expected to drive user growth, although immediate revenue impact is limited as the focus is on scaling [12] Valuation Metrics - Roku currently trades at a price-to-cash flow ratio of 43.86X, significantly higher than the industry average of 31.54X, indicating high growth expectations but an unattractive valuation for value investors [18] Investment Considerations - While Roku shows strong platform fundamentals and user engagement, caution is advised due to elevated inventory levels, margin pressures, and competitive challenges in the ad-supported streaming market [21][22]