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NY Times (NYT) Up 20% in 3 Months: How Should Investors Play?
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The New York Times Company (NYT - Free Report) has seen a remarkable uptrend in its stock performance over the past three months, driven by substantial growth in its subscriber base and a strategic shift toward digital media. This evolution has solidified NYT's position as a key player in the ever-changing media landscape.
In the said period, NYT's stock has risen approximately 20.1%, outpacing both the industry’s 18.8% increase and the S&P 500's growth of 7.6%. On Jul 5, 2024, the stock reached a 52-week high of $52.58 before closing at $52.27.
Technical indicators are supportive of The New York Times Company's strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in NYT's financial health and prospects.
The company has successfully pivoted from a traditional print newspaper to a leading digital media entity. This strategic shift, bolstered by a commitment to high-quality journalism and a robust subscription model, has been pivotal in driving growth and engagement.
Image Source: Zacks Investment Research
Let’s Dig Deeper
The sustained expansion of The New York Times Company's subscriber base is undeniably pivotal. As the subscriber base increases, so does the company's influence and market standing, making it an appealing platform for advertisers eager to connect with a wider and more engaged audience.
The New York Times Company ended the first quarter of 2024 with roughly 10.55 million subscribers across its print and digital products, including roughly 9.91 million digital-only subscribers. Of the 9.91 million subscribers, about 4.55 million were bundle and multiproduct subscribers. There was a net increase of 210,000 digital-only subscribers compared with the end of the preceding quarter.
Subscription revenues of $429 million grew 7.9% year over year. Subscription revenues from digital-only products jumped 13.2% to $293 million. This reflects an increase in bundle and multiproduct revenues and a rise in other single-product subscription revenues.
The company achieved consistent growth in its digital-only average revenue per user (ARPU). The ARPU increased to an impressive $9.21 in the first quarter from $9.04 in the year-ago period. This increase in ARPU can be attributed to subscribers transitioning from promotional pricing to higher rate plans and price hikes for tenured non-bundle subscribers.
Projections for the second quarter of 2024 also point to a decent increase in total subscription revenues, with digital-only subscription revenues expected to climb even higher. Management envisions second-quarter total subscription revenues to increase about 6-8%, with digital-only subscription revenues anticipated to rise approximately 11-14%.
Wrapping Up
The New York Times Company’s robust stock performance, supported by positive technical indicators, reflects market confidence in its ongoing growth and innovation. As NYT continues to leverage digital opportunities and enhance subscriber engagement, it stands poised to maintain its leadership in the media industry, making it an attractive prospect for investors. Over the past 60 days, the Zacks Consensus Estimate for earnings for the current and next fiscal has increased by 7.9% and 4.2% to $1.77 and $1.97 per share, respectively. Currently, The New York Times Company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dropbox offers a cloud-based platform that facilitates businesses and individuals to create, access and share digital content globally. It currently sports a Zacks Rank #1. DBX has a trailing four-quarter average earnings surprise of 13.1%.
The Zacks Consensus Estimate for Dropbox’s current financial-year sales and earnings suggests growth of 1.7% and 7.1%, respectively, from the year-ago reported numbers.
Datadog, the monitoring and security platform for cloud applications, currently sports a Zacks Rank #1. DDOG has a trailing four-quarter average earnings surprise of 23.2%.
The Zacks Consensus Estimate for Datadog’s current financial-year sales and earnings suggests growth of 22.1% and 16.7%, respectively, from the year-ago reported numbers.
Comcast, which offers a broad suite of technology solutions, currently carries a Zacks Rank #2 (Buy). CMCSA has a trailing four-quarter average earnings surprise of 10.3%.
The Zacks Consensus Estimate for Comcast’s current financial-year sales and earnings suggests growth of 1.8% and 6%, respectively, from the year-ago reported numbers.
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NY Times (NYT) Up 20% in 3 Months: How Should Investors Play?
The New York Times Company (NYT - Free Report) has seen a remarkable uptrend in its stock performance over the past three months, driven by substantial growth in its subscriber base and a strategic shift toward digital media. This evolution has solidified NYT's position as a key player in the ever-changing media landscape.
In the said period, NYT's stock has risen approximately 20.1%, outpacing both the industry’s 18.8% increase and the S&P 500's growth of 7.6%. On Jul 5, 2024, the stock reached a 52-week high of $52.58 before closing at $52.27.
Technical indicators are supportive of The New York Times Company's strong performance. The stock is trading above both its 50-day and 200-day moving averages, indicating robust upward momentum and price stability. This technical strength reflects positive market perception and confidence in NYT's financial health and prospects.
The company has successfully pivoted from a traditional print newspaper to a leading digital media entity. This strategic shift, bolstered by a commitment to high-quality journalism and a robust subscription model, has been pivotal in driving growth and engagement.
Image Source: Zacks Investment Research
Let’s Dig Deeper
The sustained expansion of The New York Times Company's subscriber base is undeniably pivotal. As the subscriber base increases, so does the company's influence and market standing, making it an appealing platform for advertisers eager to connect with a wider and more engaged audience.
The New York Times Company ended the first quarter of 2024 with roughly 10.55 million subscribers across its print and digital products, including roughly 9.91 million digital-only subscribers. Of the 9.91 million subscribers, about 4.55 million were bundle and multiproduct subscribers. There was a net increase of 210,000 digital-only subscribers compared with the end of the preceding quarter.
Subscription revenues of $429 million grew 7.9% year over year. Subscription revenues from digital-only products jumped 13.2% to $293 million. This reflects an increase in bundle and multiproduct revenues and a rise in other single-product subscription revenues.
The company achieved consistent growth in its digital-only average revenue per user (ARPU). The ARPU increased to an impressive $9.21 in the first quarter from $9.04 in the year-ago period. This increase in ARPU can be attributed to subscribers transitioning from promotional pricing to higher rate plans and price hikes for tenured non-bundle subscribers.
Projections for the second quarter of 2024 also point to a decent increase in total subscription revenues, with digital-only subscription revenues expected to climb even higher. Management envisions second-quarter total subscription revenues to increase about 6-8%, with digital-only subscription revenues anticipated to rise approximately 11-14%.
Wrapping Up
The New York Times Company’s robust stock performance, supported by positive technical indicators, reflects market confidence in its ongoing growth and innovation. As NYT continues to leverage digital opportunities and enhance subscriber engagement, it stands poised to maintain its leadership in the media industry, making it an attractive prospect for investors. Over the past 60 days, the Zacks Consensus Estimate for earnings for the current and next fiscal has increased by 7.9% and 4.2% to $1.77 and $1.97 per share, respectively. Currently, The New York Times Company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Worth Looking
Here, we have highlighted three other top-ranked stocks, namely Dropbox (DBX - Free Report) , Datadog (DDOG - Free Report) and Comcast Corporation (CMCSA - Free Report) .
Dropbox offers a cloud-based platform that facilitates businesses and individuals to create, access and share digital content globally. It currently sports a Zacks Rank #1. DBX has a trailing four-quarter average earnings surprise of 13.1%.
The Zacks Consensus Estimate for Dropbox’s current financial-year sales and earnings suggests growth of 1.7% and 7.1%, respectively, from the year-ago reported numbers.
Datadog, the monitoring and security platform for cloud applications, currently sports a Zacks Rank #1. DDOG has a trailing four-quarter average earnings surprise of 23.2%.
The Zacks Consensus Estimate for Datadog’s current financial-year sales and earnings suggests growth of 22.1% and 16.7%, respectively, from the year-ago reported numbers.
Comcast, which offers a broad suite of technology solutions, currently carries a Zacks Rank #2 (Buy). CMCSA has a trailing four-quarter average earnings surprise of 10.3%.
The Zacks Consensus Estimate for Comcast’s current financial-year sales and earnings suggests growth of 1.8% and 6%, respectively, from the year-ago reported numbers.