FWONK, the Formula One tracking stock under Liberty Media, closed Friday at $89.54, down 1.8%, bringing its weekly decline to approximately 5.2%. The stock has retreated from its May 8 close of $94.45 as investors digest a series of corporate and operational developments.
Liberty Media completed its reincorporation from Delaware to Nevada on May 12, a move that effectively dissolved the tracking-stock structure for the Formula One group. While FWONK continues to trade under the same Nasdaq ticker, the shares now represent Series C common stock of the new Nevada entity on a one-for-one basis. The change simplifies the corporate structure but has introduced some near-term uncertainty among shareholders.
The company reported robust first-quarter earnings, with Formula One revenue surging 53% year-over-year to $617 million. Operating income reached $107 million, while adjusted OIBDA—Liberty's preferred profitability measure—doubled to $172 million, excluding depreciation, amortization, and other items. Liberty Media CEO Derek Chang highlighted "growing audiences and deepening fan engagement," while Formula 1 chief Stefano Domenicali pointed to "positive momentum" driven by renewals with Sky in the UK and Ireland, as well as new commercial partnerships.
However, the positive earnings news was tempered by a revised 2026 race calendar, which now includes 22 races—two fewer than the 2025 schedule. The reduction stems from Bahrain and Saudi Arabia not running in April, altering the timing of revenue and cost recognition and complicating year-over-year comparisons. The Canadian Grand Prix, scheduled for May 21-24 in Montreal, will serve as the next key commercial test for the series, with Monaco following on June 4-7.
Media rights remain a core bullish catalyst. Reuters reported this month that Formula One has secured five-year contract extensions with Sky in the UK, Ireland, and Italy. The UK and Ireland deal now extends through 2034, while the Italian agreement runs until 2032. Sources indicated the UK and Ireland contract is valued at nearly 200 million pounds annually, underscoring the enduring pricing power of live sports rights.
Morgan Stanley has maintained its top recommendation for Liberty Formula One, ranking FWONK as its number one pick in U.S. media and entertainment for May, ahead of TKO, Disney, and Live Nation. Analyst Sean Diffley reiterated an overweight rating, citing the strength of live sports pricing and Formula One's unique blend of sports rights and event economics. The competitive landscape includes TKO's rare live-sports assets, Disney's ESPN footprint, and Live Nation's live-event exposure, but Formula One's steady revenue streams from both media and events offer a differentiated profile.
Despite the favorable analyst sentiment, risks remain. Liberty Media highlighted geopolitical unrest, demand fluctuations for live events, regulatory changes, and third-party outcomes as potential headwinds. Additionally, the company did not repurchase any common stock between February 1 and April 30, despite having $1.1 billion still authorized for buybacks, which may signal management's cautious near-term outlook.
With 22 races on the 2026 calendar, there is limited room for further disruption, and the stock now faces the challenge of justifying its valuation after Friday's pullback. The Canadian Grand Prix weekend will provide a fresh catalyst, but investors are likely to remain focused on the interplay between the strong underlying business momentum and the structural changes that have introduced new variables into the equation.
