The New York Times’ stock has pulled back into a local correction, retreating from its year-to-date high of $87.18 to $75. The decline follows profit-taking after Berkshire Hathaway disclosed its stake in the company back in February. Even so, the underlying business remains strong, and that strength points to a likely rebound heading into earnings.

New York Times is not failing

President Donald Trump has always claimed that the New York Times business was failing. However, in reality, its business is booming, helped by its digital business, and its large market share in the media industry.

Unlike the Washington Post and LA Times, its business continues growing, with visitors on its website continuing to rise. Its total visits rose by 1% to 605 million in June, while The Washington Post and LA Times had 64 million and 25 million in the same period.

The most recent results showed that its business did well in the first quarter. Its digital-only subscription jumped by 16.1%, near the upper side of its range. Total subscription revenue rose by 11.3%, also higher than the guided range of between 9% and 11%.

NYT’s digital advertising revenue rose by 31%, while its advertising and affiliate, licensing and other revenues rose by 17% and 7.8%, respectively. These numbers are strong for a media company that has been in business in the last 175 years. 

Wall Street analysts suggest that its growth will continue, seeing modest growth, helped by Donald Trump’s news, upcoming midterm elections, and the resuming US-Iran war. 

The paper will also do well after the upcoming election, especially if Democrats win the House of Representatives and the Senate. They will intensify their investigations against Trump, including a potential impeachment. Polymarket data shows that there is a 66% chance that he will be impeached before his term ends.

NYT’s market share in the US and the potential revenue growth explains why it continues trading at a premium. Data shows that it has a forward price-to-earnings ratio of 28, higher than the communication sector average of 15. Its forward PEG ratio of 1.58 is also higher than the expected 1.23.

Analysts see some modest growth in the near term. UBS and Bank of America have a target of $80, while JPMorgan has a target of $82. The most optimistic analyst is Deutsche Bank, which noted that the stock may jump to $95. 

NYT stock price technical analysis

New York Times stock chart | Source: TradingView

The daily chart shows that the NYT stock has pulled back in the past few months, moving from the year-to-date high of $87 in April to $75 today. On the positive side, the stock has found support at the 200-day moving average.

The stock has slowly formed a bullish flag pattern, a common continuation sign in technical analysis. It is attempting to flip the red Supertrend indicator from red to green.

Therefore, the most likely scenario is where the stock continues rising as bulls target the year-to-date high of $87. Such a move would signal a 16% increase from the current level. The other potential target is $84, the 38.2% Fibonacci extension level. 

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US stocks opened higher on Tuesday after softer-than-expected June inflation data reduced expectations of an immediate Federal Reserve rate hike. 

Investors also assessed second-quarter earnings from major US banks and corporate results, while keeping an eye on rising oil prices following renewed tensions in the Middle East.

The S&P 500 rose about 0.12%, while the Nasdaq Composite gained around 0.44%. 

The Dow Jones Industrial Average slipped roughly 0.29%, pressured by IBM.

The Labor Department reported that the consumer price index (CPI) rose 3.5% year over year in June, below economists’ expectations of 3.8%. 

On a monthly basis, CPI fell 0.4%, compared with forecasts for a smaller decline.

Following the report, traders significantly lowered expectations for a near-term interest rate increase. 

Market pricing showed the probability of a rate hike at the Federal Reserve’s upcoming meeting falling sharply, although expectations for a September increase remained elevated.

Investors are also awaiting Federal Reserve Chair Kevin Warsh’s semiannual monetary policy testimony before Congress later in the day for further clues on the central bank’s policy outlook.

IBM sinks as earnings season begins

Corporate earnings remained a key focus as Wall Street’s second-quarter reporting season gathered pace.

IBM shares plunged more than 25% in trading after the technology company forecast preliminary second-quarter revenue below analysts’ expectations and warned that profits would fall short because of weaker demand across its software and infrastructure businesses.

The weakness spilled over to other software companies. 

Oracle declined 0.79%, while ServiceNow and Accenture each fell more than 5% in trading.

Meanwhile, major US banks were trading up after reporting better-than-expected quarterly profits.

Goldman Sachs rose 4.2% after stronger dealmaking activity and increased market volatility helped drive record performance in its equities trading business.

Shares of JPMorgan Chase, Citigroup, Bank of America and Wells Fargo all traded higher after posting second-quarter earnings that exceeded analyst expectations.

Investors are closely watching earnings reports for signs of corporate resilience after the S&P 500’s strong rally this year, with analysts expecting second-quarter earnings growth of nearly 24% for the index.

Chip stocks rebound as oil prices remain elevated

Semiconductor stocks recovered after Monday’s sharp sell-off, helping lift the technology-heavy Nasdaq index.

The iShares Semiconductor ETF climbed about 3.6% in trading. 

The VanEck Semiconductor ETF also advanced more than 2.7%.

Among individual chipmakers, Applied Materials gained more than 4.11%, while Teradyne rose about 5.8%. 

Lam Research and Micron Technology each climbed more than 4%, and STMicroelectronics added over 2.9%.

Despite the rebound in technology shares, gains across the broader market remained limited as oil prices stayed elevated.

US crude traded above $80 a barrel, while Brent crude rose more than 4% to above $86 a barrel after President Donald Trump announced plans to reinstate a blockade on Iranian shipping through the Strait of Hormuz. 

The announcement followed renewed military exchanges between the United States and Iran and renewed concerns about global energy supplies.

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