Here’s Why New York Times Co. (NYT) Crashed on Wednesday

We recently compiled a list of the 10 Firms Defy Wednesday’s Broader Market Optimism. In this article, we are going to take a look at where New York Times Co. (NYSE:NYT) stands against the other stocks.

Wall Street extended its winning streak on Wednesday, with all of its main indices closing in the green territory, as investors seemed to have already factored in the news of tariffs imposition alongside uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies, however, defied a broader market optimism, mostly due to disappointing earnings results. This article details the reasons behind the drop in their share prices and latest earnings performance.

To come up with Wednesday’s biggest losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of a newspaper press, illustrating the power of publishing.

New York Times Co. (NYSE:NYT)

Shares of the New York Times dived by 11.92 percent on Wednesday to end at $49.23 apiece as investors appeared to have discounted news of better 2024 earnings performance.

According to Huber Research analyst Doug Arthur, investor attention seemed to have focused instead on the company’s media expenses increasing by 46 percent during the period.

In its latest earnings release, the New York Times said total revenues for the fourth quarter of 2024 increased by 7.5 percent year-on-year to $726.6 million from $676.2 million.

The company added 350,000 digital subscriptions last quarter, pushing its online membership to 10.8 million.

For the first quarter of 2025, New York Times said it projects a 14 to 17 percent increase in digital subscription revenues, to push its total subscription revenues between 7 to 10 percent.

Digital advertising revenues were expected to rise by high single digits, while total advertising revenues were projected to either decrease or increase by low single digits.

Overall NYT ranks 2nd on our list of Wednesday’s top losers. While we acknowledge the potential of NYT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NYT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.