Andrew Bary
An unlikely winner in the stock market from Donald Trump's presidential victory is one of his biggest critics in the media: The New York Times.
Investors apparently are betting that Trump's presidency will be good for business at the Times because Trump is the man that many Times readers love to hate -- and read about. That could mean strong subscriber growth and increased engagement from current Times subscribers.
New York Times stock is up 4.7% at $55.76 Wednesday.
The first Trump term from 2017 to 2021 was great for Times shareholders as the company's stock rose nearly fourfold to $40 a share. Digital subscribers surged to seven million from 1.9 million over that span.
The Times, unlike the Washington Post, ran an editorial supporting Kamala Harris, calling Trump "unfit to lead' and a "threat to democracy."
In an analysis Wednesday published on its website, the Times wrote that "America stands on the precipice of an authoritarian style of governance never before seen in its 248-year history."
Trump isn't a fan of the publication, having called it the "failing New York Times."
Wall Street likes the Times' subscription-oriented business model with the stock trading at a lofty 30 times this year's projected earnings. The Times is one of only a handful of newspapers that has successfully made a digital transformation. Citi analyst Jason Bazinet has a Buy rating and a $63 price target on the stock. The company's market value is $9 billion.
A Trump win could help the Times with its goal of getting to 15 million total subscribers, up from 11 million at the end of the third quarter.
The Trump win probably is good for all news media since he generates buzz and controversy that is good for viewership, subscriber growth, and engagement.
Few things sell newspapers -- or their current equivalent -- better than Trump.
Write to Andrew Bary at andrew.bary@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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November 06, 2024 16:03 ET (21:03 GMT)
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