Shares of Gannett Co., Inc. (GCI) are soaring 5.33% in pre-market trading on Friday, continuing the upward momentum that began after the company released its third-quarter earnings report and announced a significant AI licensing agreement with Microsoft. This latest surge follows an impressive 28% jump to $5.25 on Thursday, reflecting growing investor confidence in the media company's strategic moves.

Despite reporting challenging Q3 results, including a revenue decline of 8.4% to $560.8 million and a wider loss per share of 27 cents compared to 14 cents in the same period last year, Gannett's stock has shown remarkable resilience. Investors appear to be looking beyond the immediate financial figures, focusing instead on the company's future prospects, particularly in the AI space.

The announcement of Gannett's partnership with Microsoft on the upcoming launch of its Publisher Content Marketplace has garnered significant attention from investors and analysts alike. This follows a similar AI content licensing deal with Perplexity announced in July, positioning Gannett at the forefront of AI integration in the media industry. While details of the Microsoft agreement remain limited, it is seen as a potential game-changer for the company's digital strategy and future revenue streams. As Gannett navigates the challenges of the digital age, its embrace of AI technologies could prove crucial in shaping its long-term success and market performance.