Why New York Times Is Poised to Pull Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, multimedia news and information company The New York Times has received the dreaded one-star ranking.

With that in mind, let's take a closer look at New York Times and see what CAPS investors are saying about the stock right now.

New York Times facts

Headquarters (founded)

New York (1896)

Market Cap

$1.5 billion



Trailing-12-Month Revenue

$2.0 billion


Chairman/Publisher Arthur Sulzberger, Jr.

CEO Mark Thompson

Return on Equity (average, past 3 years)



$955.3 million / $697.1 million



News Corp.

Washington Post

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 61% of the 439 members who have rated New York Times believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Jason Moser (TMFJMo), succinctly summed up the underperform case for our community:

[T]his is a model and market that is in the middle of a major shift away from print media toward digital media. Further, this has brought exponentially more players into this space via blogging, Twitter, Facebook, any other Internet outlet you can think of. Generally speaking with more competition out there they will need to compete more on price which means subscription fees come down. From the 10-K: "A significant portion of our revenues are currently from traditional print products where advertising revenues are declining.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why New York Times Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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