Bullish Case: Gannett's digital transformation and potential for revenue growth through successful management of ongoing litigation may revive investor confidence, especially if the lawsuit against Google yields favorable results, leading to increased ad revenues.

Bearish Case: Ongoing legal challenges and potential losses from the lawsuit could worsen ad revenue decline, damaging Gannett's brand reputation, causing significant stock price drops as competitors continue to dominate the advertising market.

Potential Outcomes:

1. Lawsuit win (40%) - boosts revenue.

2. Loss of lawsuit (60%) - damages credibility and ad revenues.

3. Positive audience response to digital content (55%).

4. Missed digital revenue targets (45%).

Trading Oracle: Consider a bullish strategy by establishing a debit spread, buying GCI 01/17/2025 5.00 C and selling 6.00 C, targeting a recovery on the bullish sentiment around lawsuits and potential ad revenue growth. Given high volatility, this setup leverages potential upside with defined risk.

November 17, 2024