Live Nation’s (LYV), stock continued to rise, hitting a new record of $127.50. Traders were awaiting its upcoming results. The stock price of Live Nation (LYV) reached a record high of $127.50 as traders waited for its upcoming earnings.
Live Nation has been growing for many years.
Live Nation has a monopoly and is growing rapidly as the demand for their services continues. The pandemic caused its annual revenue to drop from $11.5billion in 2019 down to $1.8billion in 2020.
Analysts expect this trend to continue.
Live Nation, a major company within the entertainment sector, offers venues as well as booking solutions. Over 765 millions people use it to attend concerts, tours and other events.
Also, the company owns Ticketmaster – a global platform for selling millions of tickets. This firm was acquired in a $2.5 million deal just a few short years ago. It is because of this acquisition that it has become one of the United States’ most hated companies. Some politicians even believe the deal should not have been made.
Live Nation Concerts is one of the divisions. Other divisions include Venue Nation, Ticketmaster and Live Nation Sponsorship.
Warren Buffett says that the moat of a business is an important factor to consider when choosing an investment. Live Nation is one of the largest moats within the US. This explains the reason why the company always trades above the market price.
Earnings ahead for LYV
Live Nation’s earnings report, due on Monday, will likely be the next major catalyst in its stock price.
Live Nation continued to do well, according to the most recent figures. The company’s revenue increased by 7%, to $6 billion. Its operating income grew by 21%, to $466 millions.
The number of people who attended its events increased to 39 million. The concert profit also jumped to record levels during the third quarter, as the number tickets sold grew to 183 millions.
Analysts expect Live Nation to report revenue of $7.7 Billion, which is an increase of 11% over the previous year’s same-period. The company’s fourth-quarter guidance is $5.5 billion. This represents a decline from the previous quarter, when the most active periods were the second and the third.
Analysts expect its revenues to rise from $23.6 billion by 2025, and then $26.65 billion.
The stock’s valuation is high, and this is a major concern. The company’s forward P/E ratio is 99. This is much higher than S&P 500, which averages 21.
A large valuation gap can be understood for a company with a close monopoly. As long as the company’s revenue continues to grow, it will continue to be successful.
This explains the bullishness of analysts on Live Nation stock. 10 out 12 who track the company have a positive outlook. Live Nation’s stock average is slightly above its current price of $125.60.
Live Nation Stock Price Analysis
TradingView LYV Chart
Weekly chart of the LYV shares shows a bullish trend in recent months. The price has been above both the moving averages of 50 and 200 weeks, making a gold cross in January.
The stock is now positioned at the upper portion of its body, with a pattern that looks like a cup.
Bulls will therefore continue to push Live Nation’s shares higher as they aim for the next major resistance level at $150. If the stock drops below $115, this view becomes invalid.
The Live Nation Stock forms a bullish chart: Could it soar to $150? This post may change as new information becomes available
