4 Trending Entertainment Stocks To Watch Right Now
Like it or not, entertainment stocks are still some of the most active stocks in the stock market today. After all, entertainment is a core component of all our lives. This would especially be the case seeing as we are more than a year into a global health crisis. Through entertainment, most consumers can forget about their worries momentarily, and this benefits organizations and investors alike. Fortunately for investors, there are plenty of entertainment stocks to choose from on the stock market right now.
On one hand, you have digital entertainment companies that flourished throughout the pandemic. In this group, you have video streaming companies like Roku (NASDAQ: ROKU) which continues to keep the masses entertained at home. On the other hand, traditional in-person forms of entertainment continue to gain momentum as pandemic conditions improve as well. For starters, we could look at cruise ship stocks like Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). The duo would be preparing for the return of cruise voyages this upcoming summer. Not to mention, entertainment stocks such as AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) are considered the hottest meme stocks now. Evidently, there is no shortage of investor hype around this industry, to say the least. Could one of these top entertainment stocks in the stock market be worth investing in because of this?
Best Entertainment Stocks To Watch In May
- DraftKing Inc. (NASDAQ: DKNG)
- Skillz Inc. (NYSE: SKLZ)
- Penn National Gaming Inc. (NASDAQ: PENN)
- Netflix Inc. (NASDAQ: NFLX)
DraftKings is a digital sports entertainment and gaming company. Its offerings include daily fantasy, regulated gaming, and digital media. It is the only U.S.-based vertically integrated sports betting operator. In essence, the company is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for over 50 operators in 17 countries. DKNG stock currently trades at $49.49 as of 1:40 p.m. ET and has more than doubled in the last year. The company released its first-quarter financials today, much to investors’ delight.
Firstly, the company reported a revenue of $312 million, an impressive 253% increase year-over-year. Its monthly unique payers for its B2C segment increased by 114% compared to a year earlier. On average, 1.5 million monthly unique paying customers are engaged with DraftKings each month during the first quarter. The increase reflects strong unique player retention and acquisition across Daily Fantasy Sports, Online Sports Betting, and iGaming. Given how the company is off to an outstanding start in 2021, it has increased its fiscal year 2021 revenue guidance to a range of $1.05 billion to $1.15 billion. This would equate to a year-over-year topline growth of 79%. Given this exciting piece of news, will you consider buying DKNG stock?
Skillz is an entertainment company that provides monetization services to game developers through mobile eSports platforms. The company’s principal activity is to develop and support an online-hosted tech platform. This would enable independent game developers to host tournaments and provide competitive gaming activity to end-users. Given how mobile gaming has risen to prominence in the last few years, could Skillz be on the uptrend too? Earlier this week, ARK Invest continued to add shares of Skillz to its actively managed exchange-traded funds.
On Tuesday, the company reported a record first-quarter revenue and also raised its 2021 guidance. Diving in, Skillz reported a revenue of $84 million, an increase of 92% year-over-year. Impressively, its paying monthly active users grew by 81% compared to a year ago. It also ended the quarter with $613 million in cash and had no debt. Skillz also noted that it had expanded its Android footprint, growing revenue from Android users was 2x faster than iOS. For its financial outlook, the company is increasing its 2021 revenue guidance to $375 million, which equates to a 63% growth year-over-year. With that in mind, will you consider buying SKLZ stock?
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Penn National Gaming Inc.
Next on this list is Penn, an operator of casinos and racetracks. It owns and operates 41 gaming and racing properties in 19 states and video gaming terminal operations with a focus on slot machine entertainment. It also offers live sports betting at its properties in Colorado and Iowa among others. The company’s strategy has continued to evolve from an owner of gaming and racing properties into an omnichannel provider of retail and online gaming, live racing, and sports betting entertainment. PENN stock currently trades $86.09 as of 1:40 p.m. ET and is up by over 350% in the last year.
On Thursday, the company reported its first-quarter financials and essentially kicked off the year with record results. In detail, the company posted a revenue of $1.27 billion, a 14% increase year-over-year. Net income for the quarter was $90.9 million. The company was also included in the S&P 500 in March, which underscores the investment community’s confidence in its digital transformation and its position as the largest regional gaming operator in the U.S. With so much happening for the company, will you consider adding PENN stock to your portfolio?
Topping our list would be Netflix, a content platform and production company that is headquartered in Los Gatos, California. It is one of the world’s leading entertainment services with 208 million paid memberships in over 190 countries. The company’s portfolio includes a plethora of TV series, documentaries, and feature films across a wide variety of genres and languages. NFLX stock currently trades at $502.23 as of 1:41 p.m. ET.
Despite its current lead in the streaming industry, Netflix is not resting on its laurels just yet. According to reports, the company is looking to create a platform called “N-Plus”. Netflix describes N-Plus as a “future online space” where subscribers can learn more about their Netflix preferences. By and large, this would help optimize the content that users are recommended while also boosting customer retention. If that wasn’t enough, users could also be able to create and share playlists consisting of their favorite shows. As Netflix continues to bolster its massive streaming portfolio, would you consider NFLX stock a top entertainment stock to buy?