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New York Times (NYT) AI Stock Analysis

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NYT

New York Times

(NYSE:NYT)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$68.00
▲(16.42% Upside)
The New York Times Company scores well due to its strong financial performance and positive earnings call, reflecting robust growth in digital subscriptions and strategic partnerships. Technical indicators support a bullish trend, although the valuation suggests the stock is relatively expensive. The company's financial flexibility is bolstered by a new credit agreement, though this factor is not weighted in the final score.
Positive Factors
Digital Subscription Growth
The strong growth in digital subscriptions indicates a successful transition to digital platforms, enhancing long-term revenue stability and market reach.
Strategic Partnerships
The partnership with Amazon and focus on AI integration could expand audience reach and improve content delivery, strengthening competitive positioning.
Financial Flexibility
The credit agreement enhances financial flexibility, allowing strategic investments and shareholder returns, supporting long-term growth and stability.
Negative Factors
Traffic Headwinds Due to AI
AI-driven traffic reductions from tech platforms could impact content visibility and ad revenue, posing a challenge to maintaining audience engagement.
General Traffic Challenges
Ongoing traffic challenges from tech companies' policies may affect long-term audience growth and digital ad revenue, impacting overall business performance.
Activist Investor Pressure
Activist investor pressure to adopt AI strategies could lead to strategic shifts, potentially disrupting current operations and requiring significant resource allocation.

New York Times (NYT) vs. SPDR S&P 500 ETF (SPY)

New York Times Business Overview & Revenue Model

Company DescriptionThe New York Times Company is a leading global media organization, primarily known for its flagship publication, The New York Times, which provides news, analysis, and opinion on various topics including politics, business, technology, arts, and culture. The company operates in the digital and print media sectors, offering products and services that include newspapers, magazines, and a strong digital presence through its website and mobile applications. Additionally, it has expanded into related areas such as cooking and games, further diversifying its content offerings.
How the Company Makes MoneyThe New York Times generates revenue through multiple key streams. The primary source is subscription revenue, which includes digital subscriptions to its online content and traditional print subscriptions. The company has seen significant growth in its digital subscriber base, particularly in recent years, as it focuses on delivering high-quality journalism. Advertising revenue is another important stream, encompassing both print and digital ads, though it has been more volatile due to shifts in media consumption. Additionally, the New York Times has diversified revenue through ancillary products, including its Cooking and Games sections, which offer subscription-based models. Partnerships with various organizations and platforms for content distribution also contribute to its earnings, enhancing its reach and engagement with audiences.

New York Times Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for The New York Times, with significant growth in digital subscriptions and advertising revenue, a strategic deal with Amazon, and robust financial performance. However, there are ongoing challenges due to reduced traffic from tech companies' AI products. Despite these challenges, the overall sentiment is positive due to the strong financial and operational results.
Q2-2025 Updates
Positive Updates
Digital Subscription Growth
The New York Times added 230,000 net new digital subscribers, bringing the total subscriber base to approximately 11.9 million. Digital subscription revenue increased by over 15%.
Advertising Revenue Increase
Digital advertising revenue grew nearly 19%, and total advertising revenue increased by more than 12%.
Amazon Licensing Deal
The company signed a multiyear licensing deal with Amazon, marking their first agreement with generative AI at the center.
Financial Performance
Year-over-year, revenue grew nearly 10%, AOP grew by approximately 28%, and AOP margin expanded by approximately 280 basis points.
Free Cash Flow and Shareholder Returns
The company generated approximately $193 million of free cash flow in the first half of the year and returned approximately $134 million to shareholders through share repurchases and dividends.
Negative Updates
Traffic Headwinds Due to AI
The company faces traffic headwinds related to AI overviews from tech companies like ChatGPT and Google's AI, leading to less traffic for publishers.
General Traffic Challenges
The company acknowledges challenges in maintaining traffic amidst moves by tech companies reducing traffic to publishers.
Company Guidance
During The New York Times Company's Second Quarter 2025 Earnings Conference Call, significant guidance was provided on various financial metrics and strategic initiatives. The company reported a 10% year-over-year revenue increase, with adjusted operating profit (AOP) growing by approximately 28% and AOP margin expanding by around 280 basis points. Free cash flow generation was robust, reaching approximately $193 million in the first half of the year. The company also added about 230,000 net new digital subscribers, increasing the total subscriber base to around 11.9 million, with digital-only subscription revenues growing by 15% to $350 million. Digital advertising revenue saw a 19% rise, contributing to a 12% overall increase in advertising revenue. The company projects digital-only subscription revenues to grow by 13% to 16% in the third quarter of 2025, while total subscription revenues are expected to rise by 8% to 10%. Additionally, a new multiyear licensing deal with Amazon was highlighted as a strategic move to expand audience reach and incorporate generative AI. The company maintained cost discipline while strategically investing in journalism and digital products to ensure long-term growth and resilience in a dynamic market environment.

New York Times Financial Statement Overview

Summary
New York Times demonstrates strong financial health with robust revenue and profit growth, effective cost management, and strong cash flow generation. The elimination of debt reduces financial risk, although the absence of key balance sheet metrics in 2024 limits a complete financial assessment.
Income Statement
85
Very Positive
New York Times has demonstrated strong revenue growth, increasing from $2.42 billion in 2023 to $2.59 billion in 2024, reflecting a growth rate of 6.58%. The gross profit margin has improved to 49.37% in 2024, and the net profit margin is 11.36%, showing efficient cost management and profitability. EBIT and EBITDA margins are healthy at 13.57% and 18.03% respectively, indicating operational efficiency.
Balance Sheet
75
Positive
The balance sheet shows a strong position with zero total debt in 2024, reducing financial risk. However, the lack of reported stockholders' equity in 2024 limits the calculation of debt-to-equity ratio and return on equity, which could impact comprehensive financial assessment. The equity ratio in 2023 was 64.95%, reflecting solid equity base relative to assets.
Cash Flow
80
Positive
Operating cash flow has increased to $410.51 million, supporting a robust free cash flow of $381.34 million in 2024. The free cash flow growth rate of 12.82% from 2023 indicates strong cash generation capability. Operating cash flow to net income ratio of 1.40 suggests efficient conversion of earnings to cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.69B2.59B2.43B2.31B2.07B1.78B
Gross Profit1.35B1.28B1.18B1.10B1.04B824.33M
EBITDA511.18M476.46M398.95M328.58M358.26M186.86M
Net Income320.36M293.82M232.39M173.91M219.97M100.10M
Balance Sheet
Total Assets2.81B2.84B2.71B2.53B2.56B2.31B
Cash, Cash Equivalents and Short-Term Investments540.25M565.92M451.57M347.36M661.05M595.16M
Total Debt0.0037.26M42.91M59.12M63.61M52.70M
Total Liabilities869.33M914.27M951.38M933.78M1.02B979.58M
Stockholders Equity1.94B1.93B1.76B1.60B1.54B1.33B
Cash Flow
Free Cash Flow455.24M381.34M337.95M113.73M234.46M263.48M
Operating Cash Flow489.93M410.51M360.62M150.69M269.10M297.93M
Investing Cash Flow-262.00M-306.09M-159.69M-73.56M-180.81M-199.08M
Financing Cash Flow-252.12M-192.72M-132.71M-174.31M-54.95M-44.97M

New York Times Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price58.41
Price Trends
50DMA
57.03
Positive
100DMA
55.94
Positive
200DMA
53.22
Positive
Market Momentum
MACD
0.21
Positive
RSI
50.08
Neutral
STOCH
55.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NYT, the sentiment is Neutral. The current price of 58.41 is below the 20-day moving average (MA) of 58.97, above the 50-day MA of 57.03, and above the 200-day MA of 53.22, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NYT.

New York Times Risk Analysis

New York Times disclosed 30 risk factors in its most recent earnings report. New York Times reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

New York Times Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$9.51B30.0717.13%1.06%7.82%19.39%
72
Outperform
8.97B16.2410.75%2.13%1.93%34.40%
67
Neutral
17.92B37.6113.45%0.65%-11.42%75.42%
64
Neutral
17.92B41.6613.45%0.59%-11.42%75.42%
60
Neutral
630.45M6.6248.81%-8.00%0.00%
57
Neutral
608.18M-36.87-0.20%3.30%0.97%-197.80%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NYT
New York Times
58.41
3.96
7.27%
DALN
DallasNews
15.96
11.74
278.20%
WLY
John Wiley Sons Cl A
40.32
-4.83
-10.70%
LEE
Lee Enterprises
5.40
-3.20
-37.21%
PSO
Pearson
13.98
0.60
4.48%
GCI
Gannett
4.30
-1.07
-19.93%

New York Times Corporate Events

Private Placements and FinancingStock BuybackDividends
New York Times Secures $400M Credit Agreement
Positive
Jun 18, 2025

On June 13, 2025, The New York Times Company entered into a Second Amended and Restated Credit Agreement, providing up to $400 million in revolving credit loans through June 13, 2030. This agreement includes various financial and incurrence-based covenants, allowing the company to maintain financial flexibility while ensuring compliance with leverage ratios and other conditions. The agreement permits the continuation of regular dividends and stock repurchases, provided financial covenants are met and no specified defaults occur.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025