New York Times (NYSE: NYT) stock price is surging as investors cheer its growing market share in the United States. It has jumped even as other media companies like Buzzfeed, Washington Post, and Messenger go through a tough period. The stock jumped to $49.15 on Friday, its highest point since November 2021. It is nearing its all-time high of $57.15.
Election growth aheadThe New York Times had diverged with Washington Post. According to Puck, Jeff Bezos’ company was recently forced to downsize its operations as traffic to its website crashed by over 50%. The company has never recovered after Trump lost the presidency in 2020.
The NYT, on the other hand, is firing on all cylinders as the number of subscribers grow. In its most recent results, the company said that it added 210k ner new digital subscribers. It now has over 10 million customers, much higher than the 7 million it had in Q2’21.
NYT’s digital-only subscription revenue rose by 16% to $282 million while total subscription revenue jumped by 9% to $419 million. Its advertising business is also doing well as its revenue rose to $117 million.
The company will likely see more user growth this year because of the ongoing geopolitical issues and the election period. In geopolitics, the war in Ukraine is continuing and it could get ugly as the country runs out of cash.
The crisis in the Middle East seems to be escalating, which will also lead to more coverage. Most importantly, the US will have an election this year and a lot could happen. For one, Trump, the frontrunner in the Republican side, faces numerous court dates this year. And there is a chance that he will lose some of these cases.
Joe Biden, on the other hand, is 81 years old and some analysts believe that he will ultimately drop out. The thinking behind this is simple. Trump seems to be beating Biden in polls. At the same time, Trump seems to be losing to another generic Democrat.
Taken together, these events will likely lead to more coverage and the NYT could benefit. The trend will continue, especially if Trump wins in November. Most importantly, the company has proven that it can grow its revenues even without Trump in the White House. Its annual revenue rose from $1.4 billion in 2016 to over $2.4 billion in 2023.
New York Times stock price forecast
The weekly chart shows that the NYT share price has been in a strong uptrend after bottoming at $27.08 in September 2022. The 100-week and 50-week moving averages made a bullish crossover in August last year. At the same time, the Relative Strength Index (RSI) has formed an ascending channel.
Therefore, the outlook for the stock is bullish, with the next point to watch being at $57.15, the highest point in 2021. This price is about 16.80% above the current level.
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