News Corp's Ad Revenue Takes a Hit as Digital Subscribers Surge

The Wall Street Journal parent expects its ad revenue to take a hit in direct response to the coronavirus pandemic

Media concern News Corp (NASDAQ:NWSA) announced last night that its advertising revenue would plummet as a direct result of the coronavirus pandemic. The Wall Street Journal parent did add that there has been a rise in digital subscribers as COVID-19 moves more of everyone's day-to-day life online. NWSA is up 1.1%, at $9.49, at last check.

It's been a struggle for NWSA to distance itself from its early April record lows, with previous support at the $9.50 region now acting as a stiff ceiling on the charts. And while the security is eyeing its third-straight close north of its 20-day moving average, it's still down over 34% year-to-date and 26% year-over-year.

Sentiment surrounding NWSA leans pessimistic, with five of the eight analysts covering the stock calling it a "hold" or worse, compared to just three "buy" ratings. On the other hand, the consensus 12-month price target of $13.82 is a 47.2% premium to last night's close.

Short sellers are starting to come out of the woodwork, with the 10.75 million shares sold short representing 2.8% of the stock's available float. In simpler terms, this equates to less than three days of trading at its average daily pace.