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Tuesday, May 30, 2023

Why Live Nation Entertainment (NYSE: LYV ) Isn’t Really the Bad Guy

When Taylor Swift’s army of loyal fans Outraged, the affected companies will work hard to eliminate the image of bad guys. Although this is Live Nation Entertainment (NYSE ticker symbol: LIE) find themselves, the truth presents a more complex narrative. Admittedly controversial, there is no clear alternative solution to Live Nation’s event ticketing service. Therefore, I am neutral to slightly bullish on LYV stock.

Fundamentally, Live Nation has two major controversies. First, the way it distributed live event tickets (primary market transactions) to the public for the first time caused an uproar. Before Live Nation merged with Ticketmaster in 2010, the former agreed to abide by the fair practice rules. However, New York Times The Justice Department found Live Nation repeatedly violated those agreements, the report said.

Second, the issue of ticket scalping, particularly the use of bots to quickly buy large numbers of tickets for resale at a later date (secondary market transactions), has drawn strong criticism. To be fair, scalping has been around for a long time in the LYV stock discussion.Indeed, investigative magazine reveal Note that the earliest iterations of scalping occurred during the Age of Enlightenment.

So it’s not just Taylor Swift fans who are uneasy about the associated hurdles in the primary and secondary markets. It’s a long-running problem, though “Swifties” did draw intense public attention to it.

While it’s an ugly issue that should be addressed, it’s not clear Live Nation is wrong about its position. In fact, even the scalpers themselves may not be the monsters the public thinks they are.

LYV Stock Is Ugly, But Being Uglier Is Not a Crime

what can be confirmed is, upset fan images – Often young and impressionable – touches a chord. At the same time, contempt and anger toward “responsible” entities represents a natural moral trajectory. So there’s no doubt that LYV stock has consolidated an often ugly business. However, it is unclear whether Live Nation or related secondary market participants engaged in wrongdoing.

First, there is no easy solution to the scalping dilemma. For example, former President Barack Obama signed the Better Online Ticketing Act of 2016 into law. Ostensibly, the bill targets the practice of using high-speed robots to effectively deter real fans from buying tickets. In fact, it’s 2023 and the event still spells a curse on concert and sporting event attendees.

Second, attacking the underlying companies of LYV stock cannot solve the demand problem of hot events. Mathematically, there are only so many performances a human performer can perform in a given unit of time. Plus, there are only so many seats in the venue where they perform. Under the principles of fair market capitalism, only the highest bidder counts.

Yes, many, if not most, were left out in the cold. It’s heartbreaking. This is also life. Unfortunately, governments cannot legislate to end the heartbreak in this world.

In the end, artists themselves need businesses like Live Nation as a cover to do their dirty work. In fact, Live Nation — and secondary market providers — conduct benchmark sales in the fairest way possible: Whoever wants the tickets the most pays the most.

Again, it’s just a fact of life. It says nothing about whether LYV stock is good or bad.

recovering financial situation

as a quick snapshot of it finance, Live Nation could certainly use some work.For example, its balance sheet Shows moderate stability. Notably, its Altman Z-Score, a measure of solvency, is 1.52, indicating that the struggling business is at risk of bankruptcy within the next two years. On the operational front, the company’s net profit margins are in the mid-range. From the current standpoint, LYV stock appears to be a sell.

But its three-year revenue growth rate of 13% is better than most diversified media industries. After being hit hard by the COVID-19 crisis, Live Nation is on track to recover.exist For the fourth quarter of 2022, the company reported revenue of $4.29 billionan increase of nearly 59% over the same period last year.

To be fair, it’s Net loss widens to $252 million (Compared to $210 million in Q4 2021). However, in fiscal 2022, Live Nation posted positive net income of $149 million. LYV stock could head higher as people overcome their fears of COVID-19.

Yes, this is controversial. No, there really isn’t any other viable solution.

Do analysts think LYV stock is a buy?

Turning to Wall Street, LYV stock has a Moderate Buy consensus rating based on two Buys, zero Holds, and zero Sell ratings.this LYV Average Share Price Target At $97.50, it implies a 33.6% upside potential.

Takeaway: LYV stock is here for the long haul

In some ways, Live Nation represents the slaughterhouse of the broader entertainment industry. Everyone who doesn’t seem to be vegan/vegetarian wants top sirloin steak. However, not everyone has the appetite to witness how these steaks are formed.

In all fairness, any business that makes little girls cry is ugly. However, investors cannot ignore the necessity of this business (in the context of entertainment machinery). While LYV stock may not represent a buy for the pound, it’s not a sell.


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