Why Jefferies Is Bullish on Formula One Stock Now
Liberty Media (FWONK) stock is down 4% YTD and 4% over 52 weeks, despite a recent 2% rise on positive Jefferies coverage. Q2 2026 results showed revenue declines due to fewer F1 races, with F1 revenue down 38% YOY to $764M. Analysts expect EPS to fall 8% YOY in 2026 but rise 16% in 2027. FWONK has a 'Strong Buy' consensus rating, with a $117.69 avg. price target, suggesting 24% upside.
How this was made
The 30-second read
Why it matters
The earnings miss highlights short‑term revenue pressure but management expects a full 24‑race calendar in 2027, which could improve outlook.
Market read
FWONK's earnings decline may trigger short‑term sell pressure, but long‑term growth prospects remain debated.
What to watch
Increasing digital viewership and extended Las Vegas Grand Prix contract may offset near‑term revenue weakness.
Background
Liberty Media's Formula One unit reported a sharp decline in Q2 2026 due to fewer races, while MotoGP performed relatively better.
Ticker impact
Q2 2026 earnings show a 38% drop in Formula One revenue and EPS of $0.02, missing estimates.
Potential downside of 5-10% over the next few days.
Significant revenue and earnings decline, coupled with higher valuation multiples, suggest bearish pressure.
Market effects
Weak F1 results may weigh on sports media and entertainment sector valuations.
Limited to U.S. and European investors with exposure to Liberty Media.
Modest, as Formula One is a niche segment within global media.
Counterpoint
Analysts note that reduced race count is temporary and long‑term growth from media rights could support the stock.
Key entities
- CompanyLiberty Media Formula One
Operator of the Formula One racing series, ticker FWONK.
- AnalystJefferies
Raised bullish stance on FWONK following earnings.
