S&P 500   3,963.51
DOW   33,781.48
QQQ   283.85
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S&P 500   3,963.51
DOW   33,781.48
QQQ   283.85
101 Christmas Gift Ideas Under $40
The Small Biotech Scaring Big Pharma (Ad)
This Is Why Daktronics Fell 40% In One Day 
Why You Should Avoid Carvana Even if it Avoids Bankruptcy
The 3-Stock Retirement Blueprint (Ad)
The Question of a Fed Pivot Isn't If, It's When, Here's Why
On the money: Yellen's next milestone is name on US currency
Why Your IRA Could Crash on January 16th? (Ad)
Biden releasing nearly $36B to aid pensions of union workers
Are Investors Hearing The End Of Spotify's Downtrend?
S&P 500   3,963.51
DOW   33,781.48
QQQ   283.85
101 Christmas Gift Ideas Under $40
The Small Biotech Scaring Big Pharma (Ad)
This Is Why Daktronics Fell 40% In One Day 
Why You Should Avoid Carvana Even if it Avoids Bankruptcy
The 3-Stock Retirement Blueprint (Ad)
The Question of a Fed Pivot Isn't If, It's When, Here's Why
On the money: Yellen's next milestone is name on US currency
Why Your IRA Could Crash on January 16th? (Ad)
Biden releasing nearly $36B to aid pensions of union workers
Are Investors Hearing The End Of Spotify's Downtrend?
S&P 500   3,963.51
DOW   33,781.48
QQQ   283.85
101 Christmas Gift Ideas Under $40
The Small Biotech Scaring Big Pharma (Ad)
This Is Why Daktronics Fell 40% In One Day 
Why You Should Avoid Carvana Even if it Avoids Bankruptcy
The 3-Stock Retirement Blueprint (Ad)
The Question of a Fed Pivot Isn't If, It's When, Here's Why
On the money: Yellen's next milestone is name on US currency
Why Your IRA Could Crash on January 16th? (Ad)
Biden releasing nearly $36B to aid pensions of union workers
Are Investors Hearing The End Of Spotify's Downtrend?

Streaming Music is Driving Live Nation’s Domination

Streaming Music is Driving Live Nation’s Domination Live entertainment ticketing and promotion giant Live Nation (NYSE: LYV) stock is still down (-24%) for the year despite having its best quarter ever. The promotion powerhouse has emerged from the pandemic stronger and more dominant than ever. Live Nation is widely known for operating Ticket Master, but it also owns and operates live events entertainment venues and performs talent management for many artists under its Artist Nation brand. The Company has been Teflon amidst anti-competitive practice, price fixing, and hidden fee lawsuits. Live Nation has consolidated the segmented live events market by acquiring promotions and events, very similar to how World Wresting Entertainment (NYSE: WWE) consolidated the professional wrestling industry. The digital streaming trend and e-commerce migration have been tailwinds driving momentum for the Company.

Streaming Music is Driving Live Nation’s Domination

Here’s What the Charts Say

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for LYV stock. The weekly rifle chart downtrend has stalled as the 5-period moving average (MA) sloping up at $82.60. The weekly peaked out near the $94.32 Fibonacci (fib) level as the weekly stochastic slipped under the 80-band. The weekly stochastic is now crossing back up through the 40-band. The weekly market structure low (MSL) buy triggered above $82.26. The weekly upper Bollinger Bands (BBs) sit at $89.25. The daily rifle chart uptrend has a rising 5-period MA at $85.34 with a rising 15-period MA at $83.03. The daily stochastic is rising through the 80-band. Prudent investors can watch for opportunistic pullback levels at the $84.02 fib, $82.26 fib, $80.46, $79.47 fib, $77.96 fib, and the $76.27 fib level. The upside trajectories range from the $98.55 fib up to the $117.46 level.


Back to Growth

Live Nation has swung back into the green in a fierce way with blockbuster numbers and triple digit revenue growth. Live Nation promoted over 12,500 concerts for 33.5 million fans, up 20% over Q2 2019 pre-pandemic levels. Average ticket prices grew 10% over 2019 prices. Revenues grew over 40% higher than 2019 levels. Live Nation also added over 6 million fans in the second quarter, of which 5 million were from international markets as most global markets have re-opened for live events. The Company is has stated that demand for its largest pipeline of artists is stronger than ever. Major brands like Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) and Hulu became new sponsorship clients as they connect with fans (and their spending) globally. Fan spending grew by over 20% in June at all venues.

The Streaming Music Model is Driving Artists to Work Live Events

Most musical artists make very little if anything from actual music sales due to the streaming model. No one buys records, tapes or CDs any more. Everything is digital. For artists, this means the only real money comes from live performances at festivals and concert tours. Additional income comes from licensing, sponsorships, endorsements, and merchandise sales. Most artists see very little money for music sales. For example, a million streams on Apple Music (NASDAQ: AAPL) generates between $7,500 to $10,000 in total royalties, of which the artist may keep $1,500 to $2,500 based on a 20% to 30% royalty deal with the music label. On Spotify (NASDAQ: SPOT), one million streams can make $4,000 for an artist. These rates are steadily going down, which makes it more imperative for artists to find other ways to monetize their music.

Pent-Up Demand Driving Slingshot Rebound

The slingshot rebound surged Live Nation’s business through the roof as it promoted over 12,500 concerts for 33.5 million fans in Q2 2022 and added 6 million new fans. Double-digit venue increases at all venue types including stadiums to night clubs was driven by strong demand. On Aug. 4, 2022, Live Nation released its fiscal second-quarter 2022 results for the quarter ending June 2022. The Company reported an earnings-per-share (EPS) profit  of $0.66 beating consensus analyst estimates for a profit of $0.52, beating estimates by $0.14. Revenues rose 670% year-over-year (YOY) to $4.43 billion, smashing analyst estimates for $3.92 billion. International sales was responsible for 60% of its growth. This was the highest quarterly attendance ever. Ticketmaster had a record quarter with adjusted operating income (AOI) up over 86% and transacted gross transaction values (GTV) grew 76% YoY.

Live Nation CEO Michael Rapino commented, As we look forward to the second half of 2022 and into 2023, we have sold over 100 million tickets for our concerts this year, more than we sold for the entire year in 2019. Fan demand remains strong, with continued growth in ticket buying and on-site spending.  And given the long-term nature of most of our sponsorship partnerships, our planned sponsorship for the year is now fully committed. As we prepare for 2023, everywhere globally is open for concerts, and we are actively routing into all markets with the largest artist pipeline we have ever seen at this point in the year.”

Should you invest $1,000 in Live Nation Entertainment right now?

Before you consider Live Nation Entertainment, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Live Nation Entertainment wasn't on the list.

While Live Nation Entertainment currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Live Nation Entertainment (LYV)
3.0571 of 5 stars
$71.47+0.5%N/A102.10Moderate Buy$105.67
World Wrestling Entertainment (WWE)
1.7497 of 5 stars
$76.82-0.6%0.62%29.55Hold$79.20
Alphabet (GOOGL)
2.8335 of 5 stars
$93.71-1.3%N/A18.61Moderate Buy$133.77
Amazon.com (AMZN)
2.9847 of 5 stars
$90.35+2.1%N/A82.93Moderate Buy$149.61
Apple (AAPL)
2.7274 of 5 stars
$142.65+1.2%0.64%23.35Moderate Buy$176.30
Spotify Technology (SPOT)
2.6137 of 5 stars
$77.80+2.7%N/A-40.95Moderate Buy$151.72
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Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.