Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of USA Today publisher Gannett
So what: Gannett is following a similar trading pattern to The New York Times as both traded higher on news of AOL buying out The Huffington Post, but shares then fell back to earth as the exuberance died down. The AOL buyout doesn't really do anything to change either company's business model, and the bounce was probably overdone early in the day.
Now what: The Huffington Post deal was a good fit for AOL, but the newspaper publishers have their own problems in keeping their news businesses alive. They have to make a serious move into digital content and figure out a viable way to make it profitable for the long term. Until they do that, I'll stay on the sidelines for both Gannett and The New York Times.
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