Three Stocks to Sell Due to Trump Dump Election Loss
New York Times (NYT) - Sell
Recent price $41.19 | Price target $24
The NYT has benefited greatly from the increased news consumption during the Trump presidency. Since the start of 2016, the stock is up over 300% driven purely by multiple expansion (from ~6x to ~21x) on the success of the company’s digital news offering. Subscriptions increased from just over 1 million to almost 4.7 million in 3Q20. However, overall EBITDA has been flat as growth in the digital business has only offset the continued secular headwinds facing the print business.
We believe that a decline in consumer interest in news following the departure of President Trump could result in subscriber declines. Digital subscribers - particularly those who are not on...
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