NYT - New York Times: Expensive But On The Right Track

2024-05-20 21:23:56 ET

Summary

• The New York Times has focused on digital subscriptions and product bundles to combat the decline of traditional media.
• The company has seen a ~30% increase in stock price over the past year, driven by efforts to bolster its subscription base.
• Strength is already priced into The New York Times' stock, however, as it trades at a ~25x FY25 P/E ratio.
• With more secular risk than opportunity for journalism, I'd recommend staying on the sidelines here.

It's probably needless to say that the COVID era has accelerated the digitization of our lives and sped up the process of technology eating legacy industries. In my view, few industries are as close to being on the chopping block as traditional media. With more and more people getting news headlines from both social media apps as well as free news sources, we have to wonder if even ten years from now, journalism will continue to exist in its present form....

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