Here’s why Warren Buffett just bought New York Times stock

The New York Times stock price surged by over 3% on Wednesday, reaching its all-time high, after Warren Buffett’s investment in the company. NYT jumped to a high of $76, up by 200% from its lowest level during the pandemic. So, is it a good investment?

New York Times business is doing well amid Warren Buffett's investment 

The NYT stock price jumped after Warren Buffett's Berkshire Hathaway announced a big investment in the company, even as it sold Amazon shares.

This investment came as the NYT’s business continued doing well, with most of its competition being diminished. For example, the Washington Post’s business is struggling as evidenced by the recent layoffs.

The most recent results showed that The New York Times business continued thriving, with its business adding 455k digital subscribers, bringing its total subscribers to over 12.78 million.

Its digital advertising revenue rose by 24.9% as demand from marketers continued growing, while its affiliate, licensing, and other revenues rose by 5.5%.

New York Times’ revenue jumped by 10% to $802 million, while its adjusted operating profit rose by 12.8% to $192 million.

Most importantly, its free cash flow continued rising, reaching a high of $551 million in 2025 from $537 million a year earlier. Its goal is to return at least 50% of the cash flow to shareholders

Wall Street analysts are highly bullish on the NYT stock and its business prospects. The average estimate among analysts is that its first-quarter revenue will be $700 million, up by 13% YoY. The annual revenue this year will be $3.06 billion, followed by $3.25 billion next year.

NYT has always done better than estimates, meaning that its revenue and profits will likely continue to be better than expected.

At the same time, the company is not as expensive as one would expect, especially because of its big market share now that other companies like the Washington Post and the Los Angeles Times are struggling.

Data compiled by Yahoo Finance shows that the company has a forward PE ratio of 28, slightly higher than the 25 it had two years ago. This valuation is not all that expensive because of the market share and its potential growth since this is a mid-term year and geopolitical issues may escalate.

NYT stock price technical analysis 

The weekly chart shows that the NYT stock price has continued its strong upward trend in the past few years, moving from a low of $26.35 in 2023 to the current $76.

New York Times shares have remained above all moving averages, a sign that bulls remain in control for now.

At the same time, the stock formed a large hammer candle, which is made up of a long lower shadow and a body.

Therefore, the most likely scenario is where the stock continues rising as bulls target the key resistance level at $100.