Why Is The New York Times (NYT) Stock Rocketing Higher Today

What Happened?

Shares of newspaper and digital media company The New York Times (NYSE:NYT) jumped 15.2% in the afternoon session after the company reported strong second-quarter financial results that surpassed Wall Street expectations and provided an optimistic forecast for future growth. The media company posted revenue of $685.9 million, a nearly 10% jump from the previous year. Adjusted earnings reached $0.58 per share, which beat analysts' projections. This performance stemmed from solid growth in its digital business, where it added approximately 230,000 new digital-only subscribers. Looking ahead, the publisher also forecasted third-quarter subscription revenue growth above market estimates. Management credited this positive outlook to the strength of its bundled offerings, which combined its core news with popular products like The Athletic and Wordle.

Is now the time to buy The New York Times? Access our full analysis report here, it’s free.

What Is The Market Telling Us

The New York Times’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for The New York Times and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 4.2% on the news that Amazon agreed to pay the company at least $20 million annually as part of a deal related to artificial intelligence. The agreement, reported by the Wall Street Journal, provided a new, significant revenue stream for the media company. This deal allows Amazon to use The New York Times' content to train its artificial intelligence models, highlighting the increasing value of high-quality journalism in the age of AI. The move signaled to investors that the company was successfully finding ways to monetize its vast archive of content beyond traditional subscriptions and advertising.

The New York Times is up 18.1% since the beginning of the year, and at $61.77 per share, has set a new 52-week high. Investors who bought $1,000 worth of The New York Times’s shares 5 years ago would now be looking at an investment worth $1,329.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.