Summer Sale
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Opinions David Baskin
Live Nation Entertainment Inc.LYVPAST TOP PICKNov 14, 2023
David BaskinStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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LYV is up 21% this year, which we would not consider so bad. Sales have tripled since 2020 in the covid rebound, and are expected to rise about 10% next year. Concert sales rose 29% last quarter. There are some legal issues, regarding concentration in the industry and investigations by the government, but otherwise we do not see a lot of issues. At 75X earnings, however, the stock is too expensive to get us really interested.
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Post Covid-19 demand for entertainment will remain strong.
Higher prices not impacting demand.
Artists forced to tour as a result of Spotify.
Expecting many years of live show demand growth.
Expanding vertically into venue ownership.
Barry SchwartzDavid BaskinBarry Schwartz
Brian Madden
Barry SchwartzBarry SchwartzHe'd double-down on this after recommending this some weeks ago, though the stock has been a bit of a dud since then. Let's assume demand will be there. Goldman Sachs (in this bullish call today) said there'll be twice as many musicians touring than in a normal year, and LN can capitalize. Rising cases are not enough to justify lockdowns, because people won't allow. He still likes this.
It's pricey but should be. Goldman Sachs predicts a blockbuster year for them and it's justified in this reopening. LN sells beer, t-shirts and VIP packages which offer super-high margins. LN controls so many venues and faces little competition. A great company, but not cheap.
They control almost all the live venues for concerts. Demand and schedule for concerts remains huge, like Canadians seeing Taylor Swift in other countries.