Live Nation Entertainment
The US has seen plenty of volatility lately. The streets of cities are filled with rioters and coronavirus has caused plenty of havoc across all states. However, amidst all the chaos, Live Nation Entertainment’s stock rose by close to 9% over 2 days.
Live Nation is an events promoter and concert venue operator. The company also promotes well-known talent. Live Nation artists include names like Jay-Z, Shakira, and U2. Among Live Nation Entertainment subsidiaries is the famous name Ticketmaster.
You may be wondering that Live Nation does business in areas that are perhaps the most affected by COVID-19 and social distancing norms. Live entertainment and sports look to be a tough sell at the moment. That makes the stock’s rise all the more surprising.
The reason, according to observers, could be the recent indications of the downturn bottoming out. The Institute of Supply Management reported the non-manufacturing index for business activity to be 45.4 for May 2020. While any number below 50 is a contraction, 45.4 has been interpreted as a positive signal when the index was expected to come in at 44.7. The positive jobs report has also boosted sentiments.
Live Nation has also been adapting to the pandemic-affected world in its effort to help its artists as well as stay connected with fans. During the Q12020 earnings call in May, Live Nation CEO Michael Rapino said, “Millions of fans in over 100 different countries have joined Insomniac’s Virtual Rave-a-Thons, while drive-in concerts are finding a new purpose to socially distant concert halls. Throughout all this, we are still motivated by the long-term potential of global live events.”
Live Nation Entertainment stock closed at $53.42 on 9th June 2020, up 13.03% for the past month.