NYT stock fell about 7% on September 22, 2026. There was no bad earnings report and no drop in subscribers behind it. The biggest cloud over the stock is the Department of Justice (DOJ) siding with Microsoft and OpenAI in their copyright fight against The New York Times.
In this post, I’ll break down what happened, why it matters for NYT’s business, and what I’m watching next.
Table of Contents
What happened
On September 1, 2026, the DOJ filed a “statement of interest” in The New York Times’ copyright lawsuit against OpenAI and Microsoft. In it, the DOJ argued that training AI models on copyrighted articles counts as “fair use,” not infringement.
The stock slid over the following weeks as the story stayed in the news, and on September 22 it fell about 7% in a single day, breaking below its 50-day moving average. Several finance sites pointed to technical selling that day rather than one new headline. That’s often how it works: a big risk hangs over a stock, and the selling happens in waves.
The lawsuit behind it
The New York Times sued OpenAI and Microsoft in December 2023. It argues that they used millions of its articles, without permission or payment, to train AI models like ChatGPT, and that the AI’s answers now compete with its journalism.
The case is now combined with similar lawsuits from other publishers and authors in Manhattan federal court, under Judge Sidney Stein. In April 2025, the judge largely rejected OpenAI and Microsoft’s attempt to get the case thrown out, so the main copyright claims are still moving forward.
What is a “statement of interest”?
A statement of interest is the federal government telling a judge what position it thinks the court should take, even though the government isn’t part of the lawsuit.
It’s not a ruling, and the judge doesn’t have to follow it. But when the federal government weighs in, courts may give it weight. That’s why investors paid attention.
One detail most headlines missed: the DOJ backed OpenAI on training, but said the AI’s outputs aren’t necessarily covered by the same argument. So even if the court agrees with the DOJ, parts of the Times’ case, such as ChatGPT reproducing its articles, could still stand.
Why it matters
If the court agrees, AI companies keep training on quality journalism for free, while publishers like NYT lose a shot at licensing revenue they were counting on.
That money matters. AI licensing is one of the few new revenue streams publishers have found, and a fair-use ruling would weaken their bargaining power with every AI company, not just OpenAI. The lawsuit itself is also expensive: NYT has been reporting unusual legal costs from its AI litigation.
NYT’s actual business is doing fine
This drop is about a lawsuit, not the business falling apart. In its most recent quarter (Q2 2026), NYT:
- Grew digital-only subscription revenue 16.4% year over year.
- Added about 280,000 net digital-only subscribers.
- Reached 13.35 million total subscribers.
Subscriptions, Games like Wordle, and The Athletic are still growing. The stock is pricing in legal risk, not a broken company.
The part worth remembering
A stock with a red chart doesn’t always mean a broken business. Sometimes it’s just the market pricing in a lawsuit. Understanding why a stock is moving, rather than just seeing red, is what separates a reactive decision from an informed one.
What to watch next
- Judge Stein’s ruling on fair use. This is the big one, and there’s no date yet.
- The Times’ response to the DOJ filing.
- Other AI copyright cases. Rulings for or against AI companies in similar cases could move NYT’s stock too.
- NYT’s next earnings report (Q3 2026), to confirm the core business is still growing.
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NYT Stock FAQ
What is a statement of interest?
It’s a filing where the federal government tells a judge its position on a case it isn’t part of. It isn’t binding, but courts may give it weight.
Did the court rule in favor of OpenAI?
No. As of now, the judge hasn’t ruled on the fair-use question. The DOJ filing is only an argument.
Does this mean The New York Times will lose the case?
Not necessarily. The DOJ only backed OpenAI on training, not on AI outputs, and the judge can disagree with the DOJ entirely.
Is NYT stock a buy after the drop?
That depends on your own research and risk tolerance. The core business is growing, but the lawsuit outcome is uncertain, and a loss could weigh on the stock.
This isn’t financial advice, just a plain-English breakdown of why the stock moved. As always, do your own research before making investment decisions.
