During a month when most high-profile stocks headed lower, The New York Times Co. (NYT 1.10%) was bucking the trend, delivering double-digit gains in November.
The only major piece of news out on the stock was its third-quarter earnings report, as the media powerhouse topped estimates. The stock traded flat the day of the report, but then gained over the next six sessions as the results appeared to boost confidence in the stock.
By the end of the month, The New York Times Co. had finished the month up 13%, according to data from S&P Global Market Intelligence. As you can see from the chart below, the stock marched higher in the second week of the month after the report came out and held its gains even as concerns about an AI bubble weighed on the broader market.
What happened with The New York Times last month
In its third-quarter earnings report, the company delivered another round of solid growth, adding 460,000 net digital-only subscribers to bring the total number of subscribers to 12.33 million, 11.76 million of which were digital-only.
Digital advertising revenue also rose, driving overall revenue up 9.5% to $700.8 million, which topped estimates at $692 million. Margins continued to improve with adjusted operating profit rising 26.1% to $131.4 million, bringing adjusted operating margin to 18.7%. Adjusted earnings per share increased from $0.45 to $0.59, beating expectations at $0.53.
Guidance was also solid as the company called for total subscription revenues of 8-10% and a 6%-7% increase in adjusted operating costs, implying that margins would continue to increase.
Wall Street generally cheered the report, with several analysts raising their price targets on the stock.
The company also continues to wage a legal war against Microsoft and OpenAI, alleging that the ChatGPT parent used its content in an unauthorized manner to train its chatbot.
Last month, OpenAI issued a statement pushing back on The New York Times' demand that it turn over 20 million private ChatGPT conversations, showing the temperature may be going up in the legal battle.
Image source: New York Times.
What's next for The New York Times
At this point, the Times has successfully reinvented itself for the digital age, and while it's not guaranteed that the company will continue to put up steady growth, the business seems capable of delivering on that promise.
It recently introduced a TikTok-like vertical video feature on its app, giving users the opportunity to scroll through Times-produced videos, showing it's evolving with the industry.
Given the strength of its brand and the success of its business, the Times looks like a good bet to continue growing over the long term.
