New York Times: A Buy Amidst Political Controversy

Despite the softer numbers in operating profit and advertising revenue, the actions the NYT is taking now has set the company on the path to higher profits for the long term.

Operating costs increased in the third quarter from $380.8 million to $401.5 million, resulting from its release of 8 new episodes of its television show, "The Weekly." However, the company's diversification into offerings such as its podcast, "The Daily" and the television show should help to offset the decline in advertising revenue derived from its print edition. The podcast currently has over 2 million people listening to it daily.

The New York Times noted an increase in the volume of news in its fiscal third quarter last year, and the company expects this to continue through 2020 in light of the presidential election. President Trump will most likely increase his attacks on the Gray Lady as it covers the actions of his administration and his election campaign. This, along with the changes in its advertising models, will result in higher subscriptions, increased revenue, and higher profitability.

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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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