What Happened?

Shares of newspaper and digital media company The New York Times (NYSE:NYT) fell 8% in the morning session after the company reported underwhelming third-quarter earnings. Its subscriber count missed, and its EBITDA fell short of Wall Street's estimates. Notably, the company added 260,000 digital-only subscribers, below expectations, a deceleration from the 300,000 additions recorded in the previous quarter. 

Another disappointing aspect was the advertising revenue miss, amid a typically strong period for media companies, especially platforms with inventories relevant to the elections. Overall, this was a challenging quarter for the company.

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What The Market Is Telling Us

The New York Times’s shares are not very volatile and have only had 3 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 New York Times is up 10.1% since the beginning of the year, and at $52.66 per share, it is trading close to its 52-week high of $56.83 from October 2024. Investors who bought $1,000 worth of The New York Times’s shares 5 years ago would now be looking at an investment worth $1,654.

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