ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

The Biggest Bets in Showbiz: Here are 10 Best Entertainment Stocks to Invest in

While businesses are in for a challenge in the coming years, it's still a good idea to watch out for the stocks in the entertainment industry...
PUBLISHED OCT 21, 2023
Cover Image Source: Getty Images | Dave & Buster's | Getty Images | AaronP/Bauer-Griffin | DraftKings | Getty Images | Denise Truscello
Cover Image Source: Getty Images | Dave & Buster's | Getty Images | AaronP/Bauer-Griffin | DraftKings | Getty Images | Denise Truscello

The media and entertainment industry is set to transform in the coming year as per Deloitte, and both the studios and the streaming services must chalk out a plan to deal with market disruption and competition.

Netflix | Getty Images |  Mario Tama
Netflix | Getty Images | Mario Tama

According to EY, businesses need to work on building long-lasting relationships with their subscribers to achieve sustained success. While businesses are in for a challenge in the coming years, it's still a good idea to watch out for the stocks in the entertainment industry, and below are the ones to focus on.

1. Roku 

Roku inc. | Getty Images |  Justin Sullivan
Roku Inc. | Getty Images | Justin Sullivan

The company that runs the streaming service reported a revenue of $867.06 million in Q4 of 2022, which was more than the market estimates. The platform revenue increased 20% year over year to reach $2.7 billion and the active users reached 70 million. A net increase of 9.9 million active accounts was seen since the year 2021. More than 30 hedge funds were bullish on Roku, making it a good stock to invest in.

2. SeaWorld Entertainment, Inc.

Animals from Seaworld Parks & Entertainment are shown | Getty Images | Ilya S. Savenok
Animals from Seaworld Parks & Entertainment are shown | Getty Images | Ilya S. Savenok

SeaWorld Entertainment has a lot of subsidiaries and operates a theme park and also an entertainment company here in the US. Last year in November, it reported a Q4 revenue of $390.5 million which crossed the estimates by Wall Street. As per Insider Money's fourth quarter reports, over 30 hedge funds are currently bullish on SeaWorld, which means they are one of the best entertainment stocks to invest in right now.

3. Boyd Gaming Corporation

Boyd Gaming | Google
Boyd Gaming | Google

The gaming company operates in places like Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company operates in three segments, which are Las Vegas Locals, Downtown Las Vegas, and Midwest & South. The company paid a $0.16 per share quarterly dividend on April 15. Investors are currently piling into the company and therefore, you should too.

4. Dave & Buster's Entertainment, Inc.

 General view of Dave & Buster's | Getty Images |  AaronP/Bauer-Griffin
General view of Dave & Buster's | Getty Images | AaronP/Bauer-Griffin

The company manages dining and entertainment establishments for families and adults in North America. It is currently one of the best entertainment stocks to invest in since it reported a revenue of $563.7 million which surpassed the Wall Street estimate by $31.86 million. More than 30 hedge funds were bullish on Dave & Busters and Scott Ross’ Hill Path Capital is the largest stakeholder in the company, with 7 million shares worth $252.3 million. 

5. DraftKings Inc.

DraftKings | Getty Images | Denise Truscello
DraftKings | Getty Images | Denise Truscello

The company DraftKings manages a digital sports entertainment and gaming enterprise and it reported a Q4 GAAP EPS of -$0.53 and a revenue of $855 million, which was way more than the market estimates. The revenue increased more than 80% on a year-over-year basis and therefore is one of the best entertainment stocks to invest in right now. The company previously estimated FY23 revenue at $2.95 billion and therefore the stock is preferred by long-term investors.

6. World Wrestling Entertainment, Inc

 WWE | Getty Images | Ethan Miller
WWE | Getty Images | Ethan Miller

The entertainment and media company operates in the sports entertainment industry in North America, the Middle East, Europe, Africa Asia Pacific, and Latin America. More than 32 hedge funds were bullish on the company which is way more compared to the previous quarter and therefore WWE is a great pick for investors who are looking to invest for the long term. One of the most prominent stakeholders in the company is Robert Pohly’s Samlyn Capital which holds 893,909 shares worth $61.25 million. 

7. Madison Square Garden Sports Corp

Old Building of Madison Square Garden | Getty Images | Getty Images
Old Building of Madison Square Garden | Getty Images | Getty Images

The professional sports organization owns several assets including the New York Knickerbockers and the New York Rangers of the National Hockey League. Apart from this, the company also owns the Hartford Wolf Pack of the American Hockey League and the Westchester Knicks of the NBA G League. Silver Lake Partners, a firm owned by Jim Davidson, Dave Roux, and Glenn Hutchins owns the biggest stake in the company with 1.9 million shares worth $348.3 million. According to Insider Monkey, more than 30 hedge funds were bullish on it.

8. Disney

Disney | Getty Images | Jeremy Moeller
Disney | Getty Images | Jeremy Moeller

After almost a complete shutdown during the early stage of the pandemic, Disney's parks have reopened and demands have soared like never before. Bob Iger, the CEO, announced that the company was going to invest $60 billion in its parks. While the company is experiencing some problems right now, the company's streaming services look like an incredible tailwind. Despite all of the struggles at the moment, it's still a good idea to invest in the company if you are looking for long-term returns.

9. Warner Bros.

Warner Bros. | Getty Images | David Benito
Warner Bros. | Getty Images | David Benito

The American film and entertainment studio is a pretty well-established company that was founded back in the year 1923. The company's Q4 revenues were $11,008 million which was a decrease of 9% ex-FX(1)(*) compared to the prior-year quarter. However, elite investors are watching out since the stocks hold long-term prospects and one should only consider buying if they are looking for long-term returns.

10. Netflix

Netflix | Getty Images |  Mario Tama
Netflix | Getty Images | Mario Tama

While Netflix has been one of the best investments in the past decade or so, the streaming service is struggling at the moment. Since it hit a peak in the Q4 of 2021, the stock has been down by 44%. The consensus among Wall Street analysts is that one should "moderate-buy" the stocks and hold if they already have. The next five years should bring an increase and the stock price should move from $528 to $1,025, which is up 94%, as per Coinpriceforcast.

MORE ON MARKET REALIST
According to the expert, personal letters and a signature from Tolkien himself added to the value of the book.
8 hours ago
Chistina and Katie Currie won over $88,000 in cash and two exotic vacations with their stunning performance.
9 hours ago
After everyone backed out, the billionaire Shark stepped up to help the founder of Diaper Dust.
1 day ago
Sun kept repeating the incorrect phrase but couldn't identify the error in time.
1 day ago
After almost closing a deal with Mr Wonderful, the founder of 'Simply Good Jars' pivoted hard.
1 day ago
The host thought it was the "worst possible answer" to give even as the team felt it was good enough.
2 days ago
Adding to the controversy, the owner of Dr. Mudd's lapdesk asked Harrison for $100,000.
2 days ago
With just milliseconds to spare, Sarah LaPilusa pulled off an incredible Bonus Round win.
2 days ago
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 days ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
3 days ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
3 days ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
3 days ago
Jennings had a record-setting winning streak as a contestant before he became the host.
4 days ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
4 days ago
The former kids champion, Skyler Hornback knew what was coming.
4 days ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
5 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
5 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
5 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
6 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
6 days ago