Key Takeaways
- F1’s 2025 season on ESPN delivered an all-time high of 1.3 million average U.S. viewers, while Apple TV reports significant streaming growth following its broadcast takeover.
- Sean Diffley from Morgan Stanley names FWONK his preferred media and entertainment stock, setting a $120 target that implies approximately 15% upside from present values.
- Guggenheim analysts lifted their price objective to $124 from $116 while maintaining a Buy stance, pointing to strengthening sponsorships and the profitable Las Vegas race.
- Wall Street consensus shows 15 out of 17 analysts recommending the stock as a Buy, with earnings per share projected to surge nearly 22% by 2027.
- The company completed its shift from Liberty Media’s tracking stock framework to standalone equity ownership, streamlining the investment thesis.
Liberty Formula One (FWONK) stock currently hovers near $104.84, and the consensus among Wall Street professionals suggests meaningful upside remains on the table.
Liberty Media Corporation, FWONK
Over the past ten years, F1 has developed into something uncommon: a globally recognized sports franchise available for public investment that portfolio managers believe remains significantly under-monetized.
The transformation accelerated after Liberty Media acquired control in 2017. Prior to that acquisition, spanning from 1950 through roughly 2016, industry insiders describe the sport’s management as suboptimal. Liberty’s stewardship introduced operational rigor, fiscal accountability, and comprehensive commercial planning.
American Market Expansion Delivers Results
The United States represented F1’s most elusive opportunity. That narrative is shifting dramatically.
ESPN documented unprecedented viewership averaging 1.3 million for the 2025 campaign, with 18 out of 21 races posting year-over-year increases. Apple TV, now holding U.S. broadcasting rights previously held by ESPN, confirms streaming audiences are climbing substantially this season, despite withholding precise metrics.
American venues in Miami, Austin, and Las Vegas have successfully attracted domestic audiences. According to UBS analyst Ryan Gravett, ticket purchases for this year’s Las Vegas Grand Prix are outpacing last year’s timeline by two months, while sponsorship agreements exceed 2025 benchmarks.
The introduction of Team Cadillac, America’s inaugural F1 team, provides an additional engagement point for U.S. supporters seeking representation.
Worldwide, approximately 70 million viewers watch each race weekend. International demand from prospective host cities remains robust, with China and Saudi Arabia actively pursuing expanded calendar slots.
Wall Street Analyst Perspectives
Sean Diffley at Morgan Stanley identifies FWONK as his premier selection within the media and entertainment sector. His $120 valuation target represents roughly 15% appreciation from current trading levels. Diffley notes the stock’s surprisingly limited institutional ownership.
Guggenheim took a more aggressive stance, elevating its target from $116 to $124 while reaffirming its Buy recommendation. The firm highlights accelerating sponsorship activity, Las Vegas race profitability, the forthcoming Madrid Grand Prix, and international broadcast contract renewals as catalysts.
Among the 17 analysts monitored by FactSet, 15 maintain Buy ratings or their equivalents. Consensus projections anticipate EPS advancing nearly 22% in 2027 to reach $2.25.
FWONK currently commands a 46x forward earnings multiple. While that valuation appears elevated, supporters highlight that sports properties consistently trade at seven to ten times revenue. F1 also produces free cash flow, which management has committed to deploying toward share buybacks over time.
Investment Considerations and Headwinds
Despite growth trends, F1’s American viewership remains modest relative to established leagues like the NFL, NBA, or MLB. Macroeconomic weakness could suppress race attendance. Financial performance can exhibit volatility quarter to quarter.
Recent quarterly results fell short of revenue and OIBDA expectations, prompting Guggenheim to reduce its 2026 OIBDA projection while simultaneously increasing its price target.
FWONK shares have underperformed broader market indices year-to-date across all series classes (A, B, and C), trading within a 52-week band of $80.15 to $109.36.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
