I don’t know if this is really a situation where “hoist on your own petard” is called for, but it’s got to be at least adjacent. Even as traditional media company New York Times (NYSE:NYT) is fighting a lawsuit over how its content was used to train OpenAI, it’s now looking to put AI to use in its own operations. The irony was not lost on investors, though, and New York Times stock is down fractionally in Tuesday afternoon’s trading.
The New York Times is looking to take a page from Google (NASDAQ:GOOG) (NASDAQ:GOOGL) and use an AI tool to better target its advertising. The new tool would allow for better niche marketing efforts. The pilot programs are set to start in the second quarter. Once the results start coming in, the Times will use those statistics in sales pitches to other advertisers.
Biting the Hand that Feeds
Even as this is in progress, the Times is actively waging war against AI. Most will remember that the Times recently sued OpenAI over copyright infringement, claiming that its content was used to teach the AI about language. But whether or not this is winnable depends largely on who you ask. An essay released the day of the suit declared that the Times “…has a near-zero probability of winning.” But others remember the lesson of MP3.com and how copyright ended up killing that service.
What Is the Price Target for the New York Times?
Turning to Wall Street, analysts have a Hold consensus rating on NYT stock based on one Buy and three Holds assigned in the past three months, as indicated by the graphic below. After a 9.33% rally in its share price over the past year, the average NYT price target of $46.50 per share implies 6.9% upside potential.
