What Happened?
Shares of newspaper and digital media company The New York Times (NYSE: NYT) jumped 4.2% in the pre-market session after 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.
After the initial pop the shares cooled down to $52.11, up 0.2% from previous close.
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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. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock dropped 11.1% on the news that the company reported weak fourth quarter results. Its number of subscribers fell below Wall Street's expectations, leading to revenue falling roughly in line with expectations. The company's guidance for Q1 2025 forecasts continued double-digit digital subscription revenue growth, but total advertising revenue could range from a slight decline to a small increase, indicating some uncertainty in ad performance. Overall, this quarter was weak.
The New York Times is down 0.4% since the beginning of the year, but at $52.11 per share, it is still trading close to its 52-week high of $57.12 from July 2025. Investors who bought $1,000 worth of The New York Times’s shares 5 years ago would now be looking at an investment worth $1,132.
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