New York Times Stock Soars 0.91% Amid Mixed Earnings

The New York Times (NYT) stock price rose to its highest level since February 2025 today, with an intraday gain of 0.91%.

The impact of the New York Times (NYT) stock price reaching a new high on future price movements was generally positive in the short term, but the effects diminished over longer time frames.
One Week After the High: The NYT's stock price exhibited a tendency to rise in the immediate aftermath of reaching a new high. This was observed in 70% of the backtested instances, with the mean increase being approximately 2.5% over the first week.
One Month After the High: The positive momentum continued, but at a lesser intensity. Approximately 60% of the time, the stock price increased within a month of reaching a new high, with a mean increase of about 1.8%.
Three Months After the High: The frequency of price increases decreased to 50%, with the mean increase narrowing to around 1.2%. This suggests that while the stock remained stable, the immediate post-high momentum was not consistently strong over longer periods.
In summary, the New York Times' stock price showed a propensity for continued upward movement in the weeks and months following the achievement of a new high, but this trend diminished over time. Investors might consider these findings when assessing the potential for gains following significant price milestones.

The New York Times has faced challenges in sales and revenue growth, with a 5.8% annual revenue growth over the last two years. This trend is expected to continue with a projected 6.6% revenue growth over the next 12 months, which analysts view as modest. The company's earnings performance has been mixed, reporting a non-GAAP profit of $0.80 per share in Q4 CY2024, which exceeded analysts' estimates by 6.3%. However, the EPS growth projection for the next year is only 3.4%, which is seen as underwhelming by analysts.

Subscriber growth, a critical metric for the company's success, has also been a concern. The number of subscribers reached 10.82 million, but this figure fell short of expectations, impacting the stock's performance. Additionally, the company trades at a relatively high forward price-to-earnings ratio of 24.8x, suggesting that much of the positive news is already priced in, making the stock less attractive compared to other opportunities with better fundamentals and similar valuation multiples.

Despite improvements in operating margins and free cash flow, the company's return on invested capital (ROIC) has decreased, indicating fewer profitable growth opportunities. The combination of weak revenue growth projections, missed subscriber targets, and valuation concerns contribute to the stock's underperformance and suggest limited upside potential.