The striking workers from the Times Tech Guild of the New York Times (NYT) are set to return to work today, although negotiations continue. After a week-long strike that began a day before the U.S. presidential elections, more than 600 tech employees of NYT are returning to work. The contract details are far from being finalized as both sides continue to hold on to their end of the bargain.
Details of the Tech Guild and NYT’s Bargain
The Times Tech Guild went on strike on November 4, warning that NYT’s digital publications reporting the elections could get hampered in their absence. The strike did impact NYT’s election coverage in some way, including slow loading of data on the app and no display of state-level needles.
The striking workers picketed outside NYT’s head office in Manhattan. These employees included software developers, data analysts, and software designers. They are responsible for the functioning of Wordle and Connections, among other features of NYT’s digital offerings.
The union proved its importance at a crucial time. Following the strike, the union chair noted that the union had the full backing of the subscribers and allies across the U.S. and that it would continue to fight for workers’ rights.
Meanwhile, NYT management stated that they will continue to negotiate fair terms of the contract with the Tech Guild. NYT reiterated that the tech workers were the highest-paid employees in the firm. Even so, the union is fighting for higher wages and benefits as well as the inclusion of the “just cause” clause. The clause ensures that workers can be fired for misconduct or similar reasons, pay increases and pay equity, and return-to-office policies.
Insights from TipRanks’ Bulls Say, Bears Say Tool
Interestingly, the Times Tech Guild strike also coincided with NYT’s Q3 FY24 earnings release. The company posted mixed results for Q3, with earnings beating estimates but sales missing expectations. Amid the challenges, the New York Times garnered mixed reviews from analysts and experts.
According to TipRanks’ Bulls Say, Bears Say tool, bulls are encouraged by NYT’s AI (artificial intelligence) licensing agreements that could bolster profits, the successful transition towards a digital subscription model, and the goal to reach 27 million subscribers by 2027.
On the other hand, bears are concerned about growing development costs and weaker-than-expected net additions, especially during the election week.
Is NYT Stock a Buy or Sell?
Analysts remain divided on New York Times stock. On TipRanks, NYT stock has a Moderate Buy consensus rating based on four Buys and three Hold ratings. The average New York Times price target of $58 implies 5.7% upside potential from current levels. Year-to-date, NYT shares have gained 13.1%.
