New York Times: A Buy Amidst Political Controversy

With the impeachment trial's opening arguments underway, all eyes are once again drawn to American political controversy. Closely covering the hearings and offering live streaming of the hearings is one of President Trump's arch-nemesis: The New York Times.

Nearly three years ago, in March 2017, we recommended that investors consider buying shares in the New York Times (NYT). At the time, NYT traded around $14.60. Currently, shares trade around $33 to $34 for an impressive increase of over 230%. We made additional buy recommendations in June 2017, March 2019, and June 2019.

We continue to recommend investing in NYT, especially with coverage of the impeachment hearings, the upcoming election season, changes the Times is making to its advertising model and positive fundamentals.

We believe that President Trump's continuing disparagement of the New York Times, which he calls "fake news" will only draw more attention to the publication and attract more subscribers. In addition, we believe the company's financial fundamentals indicate strength and growth for the "Gray Lady", despite a recent dip in advertising revenue.

Fake News Produces Real Increases in Subscriptions

The New York Times has benefited from Trump's ongoing controversies, such as the impeachment process in the House of Representatives, inquiries into alleged Russian collusion, and the Michael Horowitz IG report that reviewed the four FISA applications and the FBI's handling of the Crossfire Hurricane Investigation. The most recent news involving the U.S. killing of Iranian Maj. Gen. Qassem Soleimani in Iraq will further fuel the war of words throughout 2020.

(Click on image to enlarge)

New York Times digital subscriptions by quarter. Source: statistica.com

Trump's tweets calling out the NYT for what he believes is biased reporting have resulted in a Trump Bump in share price. It is highly likely that Trump's anti-NYT criticism will grow in intensity as the election in November draws closer. Rather than hurt the news organization's credibility, Trump's denunciation will help the company as it has for the last three years.

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Disclosure: I am/we are long NYT.

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any ...

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