New York Times Q1'26 beats with 31.6% digital ad growth but valuation seen as too high at $84

The New York Times reported strong Q1'26 results, highlighted by a 31.6% increase in digital advertising revenue and solid subscriber growth, though the latter is slowing. Despite these positives, the stock trades at about 28 times forward earnings, a premium compared to media peers, driven by rising costs from investments in video journalism. Potential upside from AI licensing exists but remains uncertain and does not justify the current high valuation. The analyst rates the stock a Sell at $84, suggesting a revisit if the price falls to $60–$65, where valuation better matches growth prospects.