3 Top Entertainment Stocks To Consider Buying [Or Selling] Right Now
The broader stock market today continues to gain as consumer spending power holds strong. Given September’s latest retail sales figures, investors may want to consider looking at the top entertainment stocks now. In brief, retail sales for September surged by 0.7%, according to the Census Bureau earlier today. For reference, Dow Jones economists were expecting a decline of 0.2%. Now, entertainment stocks cater to consumers in good times and bad. Given the current strength in consumer markets and the fast-approaching year-end holidays, we could be looking at exciting times for the industry.
All in all, some would argue that the current momentum in retail spending is rather surprising. This would be the case given fears of the reopening trade losing steam amidst rising consumer prices and the government pulling back its pandemic-era benefits. Moreover, investment banking giant Goldman Sachs (NYSE: GS) crushed analysts’ estimates in its third-quarter earnings call earlier today. The bank posted an earnings per share of $14.93 on revenue of $13.61 billion. Evidently, this is well above projections of $10.18 and $11.68 billion respectively.
Not to mention, notable names in the current entertainment trade continue to break new ground. For example, we could look at the likes of Fubo (NYSE: FUBO) and Roku (NASDAQ: ROKU) this week. Firstly, Fubo is now an authorized gaming operator for NASCAR. Thanks to this partnership, Fubo can now provide racing fans with premium wagering experiences on all their favorite NASCAR races. At the same time, Needham analyst Laura Martin recently hit ROKU stock with a Buy rating. Safe to say, there is no shortage of excitement amongst entertainment stocks in the stock market now. Could one of these names be worth watching now?
Top Entertainment Stocks To Watch This Month
- Canopy Growth Corporation (NASDAQ: CGC)
- Walt Disney Company (NYSE: DIS)
- Roblox Corporation (NYSE: RBLX)
Canopy Growth Corporation
To begin, we have Canopy Growth Corporation, a world-leading diversified cannabis, and cannabinoid-based consumer company. With its ground-breaking innovation and strategic investments, the company offers a wide product variety in high-quality dried flowers, oil, infused beverages, and edibles. The company also has a global medical brand called Spectrum Therapeutics which is a leader in both Canadian and German markets.
On Thursday, the company announced that it will be acquiring Wana Brands, the No. 1 edible cannabis brand in North America. Wana manufactures and sells gummies in the U.S. state of Colorado and licenses its intellectual property to its partners, who manufacture and distribute Wana-branded gummies across the U.S. and Canada. Canopy cited that the strategic benefits of this acquisition would be to strengthen its U.S. ecosystem and also give it market leadership in the edibles product category throughout North America.
Furthermore, Wana also has a profitable and highly scalable business model, with a good track record of generating strong revenue growth and category-leading gross and EBITDA margins. Wana’s proven licensing model also provides the opportunity to scale the brand ahead of U.S. permissibility. Given this strategic play by the company, should you be paying close attention to CGC stock right now?
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Walt Disney Company
Disney is a multinational entertainment company with headquarters in Burbank, California. The company is a leader in the animation industry before diversifying into live-action film production, television, and theme parks. DIS stock currently has enjoyed gains of over 35% in the past year alone. Recently, the company unveiled a new plethora of content for its Disney+ streaming service.
This would include 20 new APAC content titles including 18 originals in collaboration with award-winning and aspiring content creators from the region. Furthermore, this would include star-studded scripted live-action tent-pole series in drama, comedy, fantasy to variety shows, documentaries, and anime. Ultimately, this would be part of the company’s aspirations to greenlight over 50 APAC originals by 2023.
The company says that it is making another commitment by combining its global resources with the best content creators from the Asia Pacific to develop and produce original stories for Disney+. With over-the-top services going mainstream, the emergence of world-class content from the Asia Pacific, and rising consumer sophistication, Disney believes that this is the right time for it to deepen its collaboration with the region’s content creators to deliver unparalleled storytelling to global audiences. With this being said, will you consider adding DIS stock to your portfolio?
Another top name to know among entertainment stocks now would be the Roblox Corporation. In essence, the California-based company is a video game developer. Through its proprietary sandbox open-world game of the same name, it continues to make waves across the globe. Through its “human co-experience platform”, millions of players worldwide interact with each other in a vast variety of ways. This ranges from user-built interactive games to pop culture-related content and even live streamable music events in-game.
To date, the company currently boasts an average daily active user count of over 43 million. In its latest fiscal quarter report back in August, the company saw its total revenue skyrocket by 127% year-over-year. Additionally, Roblox also ended the quarter with $1.78 billion in cash on hand, a 186% year-over-year surge. As such, I could see investors eyeing RBLX stock ahead of the company’s upcoming quarterly earnings call on November 8.
Furthermore, Roblox does not seem to be slowing down anytime soon. Just yesterday, the company announced plans to further refine the player experience while monetizing its content. Namely, this will come in the form of more realistic player avatars and new in-game monetization streams. Among the notable additions would be the introduction of limited edition items. The likes of which players can exchange for Robux, a premium in-game currency, which can then be exchanged for actual cash, suggesting an NFT-like system. All things considered, would RBLX stock be a buy for you now?