URGENT UPDATE: Investors are weighing whether to buy shares of Nine Entertainment Co Holdings Ltd (ASX: NEC) or News Corp (ASX: NWS) as both media giants face significant challenges in the wake of a tumultuous year. With shares plummeting, analysts are now analyzing the potential upside for 2024.
Nine Entertainment has seen its stock price drop by approximately 13.8% over the past year, while the broader S&P/ASX 200 Communication Services Index has gained around 4%. Despite this downturn, Nine’s share price is nearing a 5-year low, which could attract bargain hunters looking for undervalued opportunities.
The company, which owns the 9Network and key newspapers such as the Sydney Morning Herald and The Age, is also adapting to modern media trends with its streaming service, Stan. In its 2025 AGM, management projected EBITDA growth in the first half of FY26 compared to the previous year, hinting at potential recovery. Analysts from TradingView suggest a 16% rise in Nine’s shares over the next year, making it a point of interest for investors.
Meanwhile, News Corp, known for its influence in Australia and abroad with prominent publications like The Wall Street Journal and The Times, has also faced a tough year, with shares down about 7% and hovering near a 52-week low. Despite these challenges, the company reported modest growth in Q1 FY25, with revenues increasing by 2% and EBITDA rising by 5%.
Market watchers highlight that investing in News Corp now, with a closing price of $45.22, could yield significant returns. Jarden recently adjusted its price target to $51.70, while TradingView estimates a one-year target of $57.38, suggesting a potential upside of up to 27%.
As both companies navigate the shifting media landscape, investors must evaluate the risks and rewards carefully. The latest insights from analysts indicate that both Nine Entertainment and News Corp may present opportunities for growth, but caution is advised.
Stay tuned for further updates on stock performance and expert opinions as this story develops. Investors are urged to consider their options wisely before making any decisions.
