Are These The Best Entertainment Stocks To Watch As The World Continues To Reopen From The Pandemic?
Entertainment stocks have been harshly impacted by the effects of the economic downfall in 2020. The coronavirus pandemic interrupted many industries, including the entertainment industry. Movie theater stocks like AMC Entertainment (AMC Stock Report) and Cinemark Holdings (CNK Stock Report) saw some of the biggest losses in the sector. Yet still, that isn’t the only entertainment sector that was affected badly by the coronavirus.
Music companies were also affected by the economic crisis. Musical artists delayed albums due to the pandemic, as they could not tour for them. Tours bring artists the most money so they saw no purpose in releasing music if they can not tour. Some entertainment stocks have been able to benefit from the pandemic still. One sector that increased in value during these times is video game stocks. As reopening continues throughout September, it will allow for more entertainment companies to grow once again. Let’s look at three top entertainment stocks that have been trending in the market.
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Top Entertainment Stocks To Buy [Or Sell] In 2020: Live Nation Entertainment Inc.
First up on this list of entertainment stocks is Live Nation Entertainment Inc. (LYV Stock Report). Live Nation is an entertainment company that operates ticket sales for live events and owns many concert venues as well. Live Nation also manages musical artists too. The company was formed in 2010 after Live Nation and Ticketmaster merged as one. On August 5th, Live Nation released its second-quarter results.
86% of fans who purchased tickets opted to keep them for rescheduled shows. Additionally, there were 19 million tickets sold for 2021 events. Live Nation began an $800 million cost reduction program target for 2020, and a $1.4 billion cash management program target in 2020.
The company put out a statement saying, “We remain confident that fans will return to live events when it is safe to do so. Our strongest indicator of demand is that fans are holding on to their tickets, even when given the option of a refund. Through the end of the second quarter, 86% of concert fans are keeping their tickets for rescheduled shows, demonstrating their continued desire to attend concerts in the future despite the current uncertainty.” That is why LYV stock is on this list of entertainment stocks.
Top Entertainment Stocks To Buy [Or Sell] In 2020: IMAX Corporation
The next entertainment stock to watch on this list is IMAX Corporation (IMAX Stock Report). IMAX Corporation is a movie theater company that produces IMAX cameras and IMAX projection systems. It also operated many IMAX affiliated theaters all across the world. IMAX is an entertainment stock that was negatively impacted by the pandemic.
IMAX recently reported its second quarter 2020 revenue. Its revenue was $8.9 million, a gross margin loss of $7.7 million. 40% of its global network is still generating revenue. IMAX has been reopening theaters all around the world.
The CEO, Richard L. Gelfond stated, “As the only global theatrical platform for blockbuster entertainment, IMAX is uniquely advantaged as theaters begin to reopen on a rolling basis throughout the world. Our model gives us the flexibility to reopen where safe, program locally relevant content to maximize revenues, and play a leadership role as the industry returns.” In the last 6 months as of September 18th, IMAX stock price is up nearly 17% a share.
Top Entertainment Stocks To Buy [Or Sell] In 2020: Cinedigm Corp.
Lastly, we must talk about Cinedigm Corp. (CIDM Stock Report) due to its 52-week highs in 2020. Cinedigm is an entertainment company that focuses on digital movie streaming. It distributes its products for entertainment platforms like Hallmark, Televisa, the NFL, and more. This entertainment company additionally helps market, source, and distribute content for other companies such as Apple, Amazon Prime, Netflix, and Xbox.
In June, CIDM stock reached a 52 week high of around $3.63 a share. Since then, this entertainment stock has been declining. In Cinedigm’s financial results it announced that consolidated revenues were $10.2 million for the quarter. Its streaming revenues were up 35% year over year to $3.1 million. Its net loss to common stockholders was $3.2 million, up 11% year over year. CIDM stock seems to be declining because the company is still dealing with a net loss. Could a future positive financial report bring this entertainment stock back up?