NYT

New York Times Co. - Ordinary Shares - Class A

TMT


Presented:08/13/2021
Price:$47.91
Cap:$8.04B
Current Price:$55.37
Cap:$9.09B

Presented

Date08/13/2021
Price$47.91
Market Cap$8.04B
Ent Value$6.77B
P/E Ratio57.97x
Book Value$8.44
Div Yield0.54%
Shares O/S167.90M
Ave Daily Vol1,417,549
Short IntN/A

Current

Price$55.37
Market Cap$9.09B
The New York Times Co. is a media organization, which engages in creating, collecting, and distributing news and information. It operates through the news product and other interest-specific products, and related content and services. It offers newspapers, print, and digital products and investments. The firm manages The New York Times, NYTimes.com, and mobile applications. The company was founded by Henry Jarvis Raymond and George Jones on September 18, 1851 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), New York Times Co/The (NYT), Twitter Inc (TWTR)

Highlights

The presenter is short shares of The New York Times Co (NYT) and sees more than 50% downside in the stock from $48 per share to $20. Aside from his expectations that opex will accelerate in the back half of this year and that there is limited runway from advertising revenue (which drove the recent Q2 beat), he is not extremely differentiated from consensus on expectations. His future earnings growth outlook is slightly lower than the Street’s estimate of $1.11 EPS this year and LDD% growth in coming years, as he doesn’t believe the company can exceed $1 EPS going forward due to subscriber churn and the need to continually invest capital. The presenter’s projection for more than 50% downside is predicated on the valuation rerating lower, as he can’t justify paying 40x earnings for a company that he does not think will grow earnings. Instead, he considers a 20x multiple more appropriate and more in line with the company’s historical valuation prior to the “Trump Era.”

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Idea Discussion

Commentor 1 - 2 weeks ago

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