Check Out These Entertainment Stocks In The Stock Market Today
With the summer season fast approaching, entertainment stocks could be worth watching in the stock market. This could be the case as consumers kick back and relax after a harsh couple of years. For the uninitiated, entertainment stocks not only encompass gaming and streaming companies but also includes theme parks and live shows as well. As such, given the coming holidays, some would argue that there will be increased demand for these entertainment services.
Recently, reports said video game maker Electronic Arts (NASDAQ: EA) could be considering selling itself in a takeover. EA has reportedly held talks with companies such as Disney (NYSE: DIS), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL). Besides that, Comcast (NASDAQ: CMCSA) has also brought up the idea of merging its media division with EA. Of course, one should tread carefully when it comes to rumors. Nevertheless, it goes to show that the industry does not lack exciting developments. Thus, here are five entertainment stocks to watch in the stock market today.
Entertainment Stocks To Watch Today
- Dave & Buster’s Entertainment Inc. (NASDAQ: PLAY)
- Take-Two Interactive Software Inc. (NASDAQ: TTWO)
- Live Nation Entertainment Inc. (NYSE: LYV)
- AMC Entertainment Holdings Inc. (NYSE: AMC)
- Roku Inc. (NASDAQ: ROKU)
Dave & Buster’s
Starting us off today is Dave & Buster’s. Put simply, the company is an owner and operator of high-volume entertainment and dining venues. The company offers its customers the opportunity to eat, drink, play, and watch all in one location. Put simply, you could have a social and fun time while having good food and beverages at the same time. Also, its stores are designed to accommodate premium sports viewing events, private parties, and business functions.
Yesterday, the company posted its financial results for its first quarter ended May 1, 2022. Jumping in, revenue came in at a record $451.1 million, up from $363.6 million in the first quarter of 2019. Total comparable sales saw an increase of 10.9% compared with the same period in 2019. As for its profits, the company reported a total net income of $67 million, or $1.35 per diluted share. For comparison, Dave & Buster’s posted a net income of $42.4 million, or $1.13 per diluted share in the first quarter of 2019. Given the company’s improvement over pre-pandemic levels, should you invest in PLAY stock?
Take-Two Interactive Software
Following that, we have Take-Two Interactive Software. In brief, it is a major name in the global video game development scene. For the most part, the company primarily operates via its two core gaming studios. These would be Take-Two’s Rockstar Games, and 2K Games subsidiaries. Notably, Rockstar is behind industry-leading series’ such as Grand Theft Auto and Red Dead Redemption. In the past month, TTWO stock has risen nearly 25% in price.
On May 23, Take-Two announced the completion of its combination with gaming company Zynga. Under the terms of the merger agreement, Zynga stockholders received $3.50 in cash and 0.0406 shares of Take-Two common stock per share of Zynga common stock. Strauss Zelnick, CEO of Take-Two commented, “We are thrilled to complete our combination with Zynga, which is a pivotal step to increase exponentially our Net Bookings from mobile, the fastest-growing segment in interactive entertainment, while also providing us with substantial cost synergies and revenue opportunities.” Given the completed merger, will you be keeping tabs on TTWO stock?
Live Nation Entertainment
LiveNation is a global entertainment company that promotes, operates, and manages ticket sales for live entertainment shows in the U.S. and internationally. These live shows include music concerts, monster truck shows, and theatrical production. Before the pandemic, the company staged about 30,000 shows per year and attracted over 60 million attendees. Additionally, it also owns and operates entertainment venues, and manages the careers of music artists.
Last month, LiveNation released its financial results for the first quarter of the year. Notably, the company seems to be regaining its momentum. The company reported a narrower loss and soaring revenue, backed by strong demand from customers and sponsors. Specifically, it narrowed its losses to $49 million from a loss of $322.7 million a year ago. In the same report, LiveNation also says that it expects fan attendance to see double-digit growth relative to 2019. Additionally, the company believes that it is set to deliver a record summer season ahead, with ticket sale momentum holding strong. With that being said, is LYV stock a buy?
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AMC Entertainment
Another notable entertainment stock to keep tabs on is AMC Entertainment. It was among the few meme stocks which retail traders pushed heavily last year. Besides that, it is also one of the largest movie exhibition companies in the U.S. and Europe. For a sense of scale, it has approximately 950 theaters and 10,500 screens across the globe. The company’s brands include AMC, AMC Classic, and AMC Dine-in.
In May, AMC posted its first-quarter 2022 results. For starters, the company saw its revenue rise massively from $148.3 million last year to $785.7 million, topping the $743 million analysts were expecting. Next to that, the company also reduced its losses to $0.52 per share, a smaller than expected loss compared to the $0.63 that was expected. As it continues to recover from the pandemic, this quarter’s performance marks the company’s strongest first quarter in two full years. As such, will you be keeping an eye on AMC stock?
Roku
Last, but not least, we have Roku. In essence, it is a company that pioneered streaming to the TV. Roku connects users to the streaming content they love. Besides that, it also enables content publishers to build and monetize large audiences, as well as provide advertisers with unique capabilities to engage consumers. ROKU stock is front and center in the stock market today. This follows a Business Insider report about a potential acquisition by Netflix (NASDAQ: NFLX).
In April, the streaming device maker announced its financials for the first quarter of 2022. Diving in, the company pulled in a total net revenue of $733.7 million. This represents year-over-year growth of 28% from $574.2 million. Its platform revenue also grew, with it rising by 39% year-over-year to $646.9 million. On top of that, Roku added 1.1 million incremental Active Accounts during the quarter, reaching 61.3 million. Moving on to earnings, the company saw its gross profits jump by 12% year-over-year to $365 million. All things considered, will you be adding ROKU stock to your watchlist?
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