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