Live entertainment and events have taken a back seat amidst the pandemic. Venues have been shut and fans are having to satisfy themselves with virtual concerts by staying at home. However, the stock price of the largest entertainment company in the world is demonstrating that things aren’t all that bad and that there may be a reason to be optimistic. After falling more than 50% during the March 2020 market crash, the stock has been on a steady uptrend. Investors who feel optimistic about the vaccination initiatives and the eventual re-opening of the economy may want to study Live Nation Entertainment a bit more closely.
Live Nation Announces Q32020 Earnings
Live Nation Entertainment announced its Q32020 earnings on 5th November 2020. The main highlights of the earnings were 83% of fans holding on to their rescheduled events rather than canceling or returning those tickets, cost reductions of $900 million in the year 2020, and significant year-on-year drops in revenue and net income. Revenue was $184 million for Q32020 as opposed to $3.7 billion in Q32019. Net income was -$2.45 per share as compared to $0.71 per share in Q32019. Most locations where Live Nation operates still had restrictions on live events even though things are starting to look up.
Live Nation Entertainment is the dominant player in the entertainment, ticketing, and events space. Therefore, it is a natural candidate when it comes to any shortlist of entertainment stocks. Live Nation’s stock closed at $69 on 25th January 2021. The stock is down 7.3% over the preceding 30 days. However, it has rallied 110% since hitting a low towards the end of March 2020. The stock has also progressed reasonably well from a price of $22 to $69 currently. Madison Square Garden Entertainment is up 1.67% for the past month after closing at $96 on 25th January 2021. Another entertainment stock is Disney. Its stock has lost 3.9% over the preceding 30 days and is up 100% since the March 2020 market fall.