Looking For The Best Entertainment Stocks To Buy? 3 Names To Know
As investors navigate the current flurry of news about the state of the economy, entertainment stocks could be worth watching. Namely, the stock market today continues to experience turbulence as experts and politicians figure out the trajectory of the economy. On one hand, the job market continues to rebound with nonfarm payrolls rising by 943,000 in July. This exceeded the 845,000 projection from economists over at Dow Jones. On the other hand, President Joe Biden highlighted the current rise in COVID-19 infections over July’s job figures. The President said, “we have a lot of hard work left to be done, both to beat the delta variant and to continue the advance of our economic recovery.”
Now, how does all this relate to entertainment stocks might you ask? Well, for one thing, the entertainment industry would likely have viable entry points for investors in the current market. For starters, the likes of Live Nation Entertainment (NYSE: LYV) would be benefitting from the eventual return of, well, live entertainment. Investors looking to bet on post-pandemic tailwinds for such top entertainment stocks could be looking to buy on the current dips. Meanwhile, even meme stocks such as GameStop (NYSE: GME) would thrive as more consumers turn to video games while homebound. Despite the company’s shares riding social media hype, GameStop’s operations would remain relevant today.
Not to mention, there are also unique plays like Disney (NYSE: DIS) and Penn National Gaming (NASDAQ: PENN) to consider. Both companies have and continue to grow thanks to immensely strategic shifts in business models towards stay-at-home markets. As a result, the duo now boasts portfolios that remain in demand regardless of the current pandemic conditions. In the case that all this has you keen on entertainment stocks, here are three making waves in the stock market now.
Top Entertainment Stocks To Buy [Or Sell] This Week
AMC Entertainment Holdings Inc.
AMC Entertainment is the largest movie exhibition company in the U.S. and Europe with approximately 950 theatres and 10,500 screens across the globe. The company has made one of the greatest comebacks after being decimated by the pandemic last year. Notably, it has also become a ‘meme stock’ after retail traders rallied behind the stock, attempting a short squeeze on the stock. AMC stock currently trades at $35.96 as of 9:39 a.m. ET and has enjoyed gains of over 600% in the past year thanks to its meme status.
On Monday, the company reported its second-quarter financials for 2021. To start things off, it reported a revenue of $444.7 million for the quarter as compared to $18.9 million a year ago. AMC also ended the quarter with $1.81 billion in cash after raising new equity capital. This would help the company navigate through the latest wave of coronavirus. It also says that it is seeing rising movie-going demand as vaccination rollout continues globally. Impressively, it welcomed more than 22 million guests back to its theatres across the globe during the quarter. New blockbuster films released during the quarter also drove successive new pandemic-era box office records.
The company also recently announced that it has reached an agreement with Warner Bros, a subsidiary of AT&T (NYSE: T) for 45 days of theatrical exclusivity in 2022. While the hybrid release model was a necessity during the pandemic, this would have eaten into box-office receipts across the board for all studios. So this would be beneficial for both AMC and AT&T with this agreement. All things considered, will you add AMC stock to your radar?
Fubo is a leading sports-first live TV company that provides a wide portfolio of premium content, interactivity, and integrated wagering. The company’s streaming platform with a focus on sports is used by over 500,000 paid subscribers. Fubo subscribers can stream a mix of over 100 TV channels, including 42 of the top 50 Nielsen-ranked networks across sports, news, and entertainment, more than any other live TV streaming platform. FUBO stock currently trades at $27.49 as of 10:01 a.m. ET.
The company will be reporting its second-quarter financials after the market closes today. In light of that, let’s see how they have been doing in their past quarter that was reported in May. Diving in, Fubo delivered record revenue of $119.7 million for the quarter. The company says that it is the first time in any first quarter that it has reported sequential revenue and subscriber growth, despite past seasonality trends. This would imply that consumers are increasingly cutting the cord and Fubo is able to provide year-round content offerings.
Last month, the company also announced a market access agreement with The Cordish Companies for its forthcoming mobile Fubo Sportsbook in Pennsylvania. The Cordish Companies is the owner and operator of the Live! Casino franchise and Fubo, through Fubo Gaming, will provide state-wide mobile access for both sports betting and iGaming. With that in mind, do you think that FUBO stock is a top entertainment stock to consider adding to your list right now?
Unity Software Inc.
Following that, we will be taking a look at Unity Software. In brief, Unity mainly operates as a design software company. Through its comprehensive suite of graphic designing software, users can create hyper-realistic assets digitally. This ranges from real-time 3D content to interactive environments and worlds within programs. The likes of which allow users to create, operate, and monetize interactive content across consumer electronic devices. In terms of clientele, the company’s wares mostly cater to game developers, architects, and filmmakers among other creative design fields.
More importantly, could all of this make U stock worth watching in the stock market today? Even as it currently trades at $109.64 as of 10:06 a.m. ET investors appear to be keen on the company’s shares. Understandably, Unity is set to report its second-quarter earnings figures after today’s closing bell. With the current shift in focus towards contactless means of entertainment, Unity’s offerings could see more demand.
In fact, Unity recently made a bold play on the operational front with its acquisition of Interactive Data Visualization (IDV). Notably, IDV’s SpeedTree software is present in some of the top games in the gaming world today. This ranges from Activision’s (NASDAQ: ATVI) Call of Duty: Warzone to Sony’s (NYSE: SONY) Ghost of Tsushima titles. With this play, Unity seems to be aggressively bolstering its software offerings, catering to the needs of today’s game developers. Would all of this make U stock a top entertainment stock to watch right now?