Why New York Times Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multimedia news and information company The New York Times (NYSE: NYT  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at New York Times and see what CAPS investors are saying about the stock right now.

New York Times facts

   

Headquarters (founded)

New York (1896)

Market Cap

$1.5 billion

Industry

Publishing

Trailing-12-Month Revenue

$2.0 billion

Management

Chairman/Publisher Arthur Sulzberger, Jr.

CEO Mark Thompson

Return on Equity (average, past 3 years)

15.1%

Cash/Debt

$955.3 million / $697.1 million

Competitors

Gannett 

News Corp. 

Washington Post 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 61% of the 439 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Jason Moser (TMFJMo), succinctly summed up the underperform case for our community:

[T]his is a model and market that is in the middle of a major shift away from print media toward digital media. Further, this has brought exponentially more players into this space via blogging, Twitter, Facebook, any other Internet outlet you can think of. Generally speaking with more competition out there they will need to compete more on price which means subscription fees come down. From the 10-K: "A significant portion of our revenues are currently from traditional print products where advertising revenues are declining.

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