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Thursday, November 14, 2024
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Why Madison Square Garden Entertainment Is a Rockstar Stock This Week

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what happened

One of the newest entertainment stocks, madison square garden entertainment (MSGE 7.97%)and one of the best-performing sectors in the past few sessions.

Shares of the company were up nearly 25% so far this week, according to compiled data, before the market opened on Friday. S&P Global Market Intelligence. Enthusiastic analyst comments, solid quarterly results and potentially profitable asset sales were the catalysts.

so what

Thursday is MSG Entertainment’s announcement of its Q3 FY 2023 figure.These indicate that the live entertainment provider’s income It was up 4% year-over-year to just over $201 million. In a dramatic turnaround that many performers at the company’s namesake venue envied, the company posted net income of $21.7 million, compared with a loss of $3.9 million a year earlier.

MSG Entertainment has benefited greatly from the continued hunger for live entertainment, as a strong economy and a rapidly fading pandemic are driving demand for such shows.

A day before the earnings release, Guggenheim analyst Curry Baker began coverage on MSG Entertainment stock with a buy recommendation. Baker, who has a $37 per share price target on the stock, wrote, “We like MSGE because of its venue assets around New York City, which we believe are scarce, and because of the growing demand from consumers for the on-site experience. Benefit from entertainment on demand.”

what to do

As if neither of these items were enough for a trading week, Crane’s New York Business The news broke that the company is in talks to sell the theater at Madison Square Garden, a popular entertainment venue it owns. Citing “three people familiar with the deal,” Crain’s said the sale, which could bring in $1 billion in revenue, is a potential counterparty to Italy-based developer ASTM Group.

Eric Volkman No position in any of the stocks mentioned above. The Motley Fool has no positions in any of the stocks mentioned above. The Motley Fool has a Disclosure Policy.

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