Updated Aug 10 at 5:05pm ET.
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The New York Times reported quarterly earnings of $0.69 per share, topping the $0.66 analysts expected. Revenue reached $0.76 billion, led by a 20 percent surge in digital advertising and a 16 percent rise in digital subscription revenue. The company is successfully moving more readers to its "All Access" bundle, which includes Games and Cooking, helping raise the average revenue per user by about 3 percent.
However, the stock fell about 13 percent as the company added 280,000 digital subscribers, a slower pace than some investors anticipated. While total subscribers have reached 13.35 million, the market is focused on whether growth is hitting a ceiling. For long-term owners, the real story is the shift toward higher-priced bundles, which makes the business more profitable even when the raw number of new sign-ups fluctuates.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The Justice Department has issued a subpoena for the records of a freelancer who wrote for the paper. The move is part of an investigation into how the journalist obtained information for a story about a U.S. military operation. While these legal disputes over news sources are common for major media organizations, they rarely have a direct impact on the company's financial health or subscription business.
Source: Reuters
A federal judge has given President Trump one month to file an amended version of his $15 billion defamation lawsuit against the paper. The judge chose not to dismiss the case immediately, which is a standard procedural step in high-profile litigation. Given the high legal bar for defamation against public figures, these cases often take years to resolve and rarely result in significant financial damages that would affect the company's long-term value.
Source: Forbes
Federal prosecutors have issued subpoenas for the phone records of relatives of several reporters. The move follows stories about security risks involving a jet gifted by the Qatari government that is used as Air Force One. The company has filed a motion to block these requests, arguing they infringe on press freedoms. While these legal battles are common for a major news organization, they highlight the ongoing friction between the publication and the federal government. This is a routine part of the business and does not change the company's long-term ability to grow its subscription bundle.
Source: WSJ
The newsroom reported that Meta Platforms is discussing a massive deal to lease computing power to Anthropic, a firm that builds artificial intelligence models. This reporting demonstrates the publication's reach into the tech sector, though the deal itself does not directly impact the company's own finances. For a long-term owner, this is a reminder of the value of the company's journalism. Breaking major business stories helps maintain its reputation as a premium news source, which is the core engine that drives its millions of digital subscriptions.
Source: Reuters
Analysts recently adjusted their outlooks following the company's latest earnings report. Only 5 of 17 analysts recommend buying the stock, though the average price target of $84 suggests a potential 29% increase from current levels.
Management has a perfect track record of clearing the bars they set for themselves, beating profit estimates for eight straight quarters. This suggests they have a very firm handle on their costs.
| Expectation | |
|---|---|
| EPS | $0.68 |
| Revenue | $768M |
New York Post · Aug 8
Seeking Alpha · Opinion · Aug 5
Business Wire · Press release · Aug 5
Seeking Alpha · Opinion · Aug 1
Forbes · Jul 25
CNBC · Jul 19
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