4 Trending Entertainment Stocks To Watch In The Stock Market This Week
It would not surprise me to see that entertainment stocks are the next group of up-and-coming stocks in the stock market today. After all, the entertainment industry has and continues to keep consumers entertained throughout the current pandemic. Whether it is in-person forms of entertainment or homebound means of enjoyment, the sector would be in focus now. This would be the case as pandemic conditions vary significantly across the globe.
On one hand, countries such as the U.S. are currently looking at the tail-end of the pandemic. Similar countries whose populations are mostly vaccinated would be looking to reopen their economies, which, by extension, includes live entertainment. In turn, companies such as Eventbrite (NYSE: EB) and Carnival Cruise (NYSE: CCL) would stand to benefit. Because of this, I could see investors eyeing these companies now. Evidently, both EB stock and CCL stock have more than tripled in value since hitting their pandemic-era lows.
On the other hand, consumer trends in the digital entertainment space could be worth noting as well. As mentioned earlier, consumers in countries that are still implementing coronavirus lockdown measures would be the target audience here. For example, the current craze over Sony’s (NYSE: SONY) PlayStation 5 has the console flying off shelves at record speeds. Meanwhile, streaming companies such as Fubo (NYSE: FUBO) continue to bolster their viewing experiences while extending market reach. In particular, Fubo revealed that its streaming platform will come pre-installed on LG Smart TVs in the U.S. With the current tailwinds in the industry, it would make sense to be eyeing the top entertainment stocks now. On that note, here are three making headlines in the stock market now.
Entertainment Stocks To Watch Right Now
- Netflix Inc. (NASDAQ: NFLX)
- MGM Resorts International (NYSE: MGM)
- DraftKings Inc. (NASDAQ: DKNG)
- Live Nation Entertainment Inc. (NYSE: LYV)
Netflix Inc.
Netflix is an entertainment company that focuses on content platforms and production. It is a world-leading streaming entertainment service with over 200 million paid memberships in over 190 countries. As cord-cutting trends continue to take place all over the world and given how a global pandemic has left more people stuck at home in the last year, Netflix’s streaming entertainment is replacing linear TV. NFLX stock currently trades at $491.02 as of 1:22 p.m. ET.
In the company’s latest quarter in April, it reported that revenue grew by 24.2% year-over-year to $7.16 billion. It finished the quarter with 208 million paid memberships, up by 14% year-over-year. Net income for the quarter was $1.96 billion, an increase of 27.4% year-over-year. It continues to anticipate a strong second half with the return of new seasons for some of its biggest hits and it also boasts an exciting film lineup.
As mentioned, the company firmly believes that in the long-term, streaming services will replace linear TV around the world. For this reason, will you consider adding NFLX stock to your portfolio?
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MGM Resorts International
MGM is an S&P 500 global entertainment company with national and international locations. It features the best-in-class hotels and casinos. Also, it boasts state-of-the-art meetings and conference spaces with incredible live and theatrical entertainment experiences to boot. MGM stock currently trades at $42.29 as of 1:28 p.m. ET and has been up by over 40% year-to-date. Last week, the company’s BetMGM announced the expansion of its market-leading sports betting app into Washington, D.C. in a partnership with the Washington Nationals.
BetMGM is a sports betting and gaming entertainment company and has essentially pioneered the online gaming industry. This partnership will make BetMGM the only mobile sports betting app available at National Park.
“Launching in Washington, D.C. at Nationals Park sets the stage for our plans to expand BetMGM within the region, as we’ve already seen great success in Virginia,” said Adam Greenblatt, CEO of BetMGM. “The Washington Nationals have been a fantastic partner, committed to innovating the in-stadium fan experience and we’re looking forward to opening our retail sportsbook at the stadium later this year.” With this exciting piece of news, is MGM stock worth buying right now?
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DraftKings Inc.
DraftKings is a digital sports entertainment and gaming company. Its products range from daily fantasy and regulated gaming to digital media. In essence, it is the only U.S.-based vertically integrated sports betting operator. The company is also a multi-channel provider of sports betting and gaming technologies. Today, however, Hindenburg Research said it was betting against DraftKings. Specifically, the Hindenburg critique was against the company’s SBTech subsidiary as well as profits made by insiders who have cashed in on the stock’s surge from its deal announcement. DKNG stock currently trades at $48.12 as of 1:28 p.m. ET.
However, investors could also see this as a buying opportunity as the company’s stock dipped on today’s opening bell. Credit Suisse analyst Benjamin Chaiken defended DraftKings in a note, saying that investors should use this opportunity to buy DKNG stock ahead of potential gambling legalization in Canada and New York. Looking at its first-quarter financials, things do look promising for the company. Firstly, DraftKings posted revenue of $312 million, an increase of 253% year-over-year. Given its outstanding start to the year, the company continues to make progress and remain on track with the migration of its own in-house proprietary sports betting engine.
It has also been strengthening its content and technology capabilities with the acquisitions of VSiN and BlueRibbon Software. Given the progress, the company has raised its 2021 revenue guidance to a range of $1.05 billion to $1.15 billion. All things considered, will you buy DKNG stock?
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Live Nation Entertainment
Live Nation Entertainment (LYV) is a global entertainment company that promotes, operates, and manages ticket sales for live entertainment all over the world. With the capability and infrastructure to bring over 40,000 shows to life and selling over 500 million tickets per year, the company is an industry leader in live entertainment. With the return of live concerts meeting sky-high consumer demand, LYV stock could be a top watch now. LYV stock currently trades at $85.65 as of 1:29 p.m. ET and is up by over 20% year-to-date.
According to the company, things appear to be looking up in the long run. Just last month, LYV provided an optimistic update on its core operations. LYV President Joe Berchtold said that concert venue bookings are on the rebound as artists begin planning for in-person events through 2022.
Notably, Berchtold highlights that the current figures are already outpacing pre-pandemic levels. In theory, as more pandemic conditions continue to improve, we could see this trend continue. Should this be the case, would you consider LYV stock a top buy?
