Stock of the Day

November 12, 2020

Live Nation Entertainment (LYV)

$149.37
-$2.95 (-1.9%)
Market Cap: $35.39B

About Live Nation Entertainment

Live Nation Entertainment, Inc. operates as a live entertainment company worldwide. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues. This segment operates and manages music venues; produces music festivals; creates and streams associated content; and offers management and other services to artists. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients and consumers with marketplace for tickets and event information through mobile apps, other websites, retail outlets, and its primary websites, such as livenation.com and ticketmaster.com; and provides ticket resale services. This segment sells tickets for its events and third-party clients in various live event categories. This segment offers ticketing services for arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. The Sponsorship & Advertising segment sells international, national, and local sponsorships and placement of advertising, including signage, online, and promotional programs; rich media offering that comprises advertising related with live streaming and music-related content; and ads across its distribution network of venues, events, and websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events or programs for specific brands. It owns, operates, or leases entertainment venues. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is headquartered in Beverly Hills, California.

Live Nation Entertainment Bull Case

Here are some ways that investors could benefit from investing in Live Nation Entertainment, Inc.:

  • The stock has a strong market capitalization of approximately $35.32 billion, indicating a solid position in the market and potential for growth.
  • Recent analyst upgrades have set a consensus target price of $151.47, suggesting that there is significant upside potential from the current stock price of around $138.64.
  • Fifteen analysts have issued a buy rating, reflecting strong confidence in the company's future performance and growth prospects.
  • The company operates in the live entertainment sector, which has shown resilience and growth potential, especially as live events continue to rebound post-pandemic.
  • Live Nation Entertainment, Inc. has a diversified business model with segments in Concerts, Ticketing, and Sponsorship & Advertising, which can help mitigate risks associated with reliance on a single revenue stream.

Live Nation Entertainment Bear Case

Investors should be bearish about investing in Live Nation Entertainment, Inc. for these reasons:

  • The stock has a high P/E ratio of 161.72, which may indicate that it is overvalued compared to its earnings, potentially leading to a price correction.
  • With a beta of 1.38, the stock is more volatile than the market, which could lead to larger price swings and increased risk for investors.
  • Despite positive analyst ratings, two analysts have issued hold ratings, suggesting some caution regarding the stock's short-term performance.
  • The company faces competition in the live entertainment industry, which could impact its market share and profitability.
  • Economic downturns or changes in consumer spending habits could adversely affect attendance at live events, impacting revenue streams.

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