Why Shares of Gannett Are Soaring Today

Shares of the large publisher Gannett (NYSE: GCI) zoomed 18% higher this morning after Citigroup analyst Jason Bazinet placed the stock on a "90-day positive catalyst watch" and upgraded his rating to neutral. Bazinet believes the U.S. Department of Justice's current lawsuit against Alphabet's Google could have positive ramifications for Gannett.Gannett is the country's largest newspaper and digital publisher and owns several big media brands, such as USA Today. In 2019, New Media Investment Group, another large publisher, acquired Gannett but continued operating under the Gannett brand. The acquisition required the company to take on a massive amount of debt. Since then, it's been an uphill battle as the print newspaper business has continued to experience disruption.This year, however, shares have popped 120% as the company has shown promising execution on its digital transformation. Digital revenues now comprise 44% of total revenue, and management believes that number will reach 50% by next year. The company also has a strong digital marketing solutions business with strong customer retention and average revenue per user (ARPU). Between 2019 and the second quarter of 2024, Gannett has lowered its debt burden from roughly $1.76 billion to $1.09 billion.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool