Strategic AI Partnership with Amazon Boosts New York Times’ Growth Prospects

In a report released today, Kutgun Maral from Evercore ISI maintained a Buy rating on New York Times (NYT – Research Report), with a price target of $60.00.

Kutgun Maral has given his Buy rating due to a combination of factors that highlight the strategic and financial benefits of the New York Times’ recent AI licensing agreement with Amazon. This multi-year deal allows Amazon to license editorial content from the New York Times, NYT Cooking, and The Athletic for AI-related uses, which is expected to enhance the reach and engagement of Times journalism across Amazon’s platforms.
Maral emphasizes that this partnership is a pioneering move for the New York Times, setting a precedent for strategic collaboration with AI platforms while safeguarding its intellectual property rights. The deal is anticipated to support the company’s “essential subscription” strategy by expanding its audience and increasing direct relationships with readers. Although the financial terms were not disclosed, the disciplined approach taken by the New York Times suggests that the economic benefits are likely favorable, potentially leading to further transformative deals in the future.

Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NYT in relation to earlier this year.