Live Nation

Live Nation promotes and manages ticket sales for live entertainment internationally. See why we believe LYV stock will reward shareholders in the long run.

The return to profitability and revenue should provide a clear indication that Live Nation has endured the worst possible scenario for a live entertainment business, and that the prospects are much brighter for the company on the heels of technology-driven growth in the industry. We also like seeing the various partnerships that Live Nation has been able to make, as well as seeing growth in different monetization areas, such as sponsorships. Live Nation Entertainment is a great company that has remained resilient during the pandemic and currently provides growth at a reasonable price to investors. From 2015 to 2019, Live Nation has seen its top line grow by 9.75% a year on average, and we believe that Live Nation will be able to replicate this growth for the next five years based on continued innovation by the company and new monetization opportunities through partnerships and sponsorships. As seen in the chart below, Live Nation has seen a huge decline in revenue and earnings during the pandemic, and the company has come back with stronger results than the pre-pandemic highs on both fronts. The company's outperformance compared to a pre-pandemic period shows the company's financial health and resiliency, and shows that the market for live entertainment is stronger than ever and that its long-term prospects look bright. The company reports that 74% of its revenue growth has come from sponsorships, which shows the different monetization potential of live events. In addition, Live Nation has seen substantial growth from the expansion of its sponsorship programs, which basically provide an opportunity for big corporations to market toward audiences through experiential advertisements. Live Nation also reports that the artist pipeline for 2023 is the largest ever, which should lend some confidence to investors who may fear that 2021 and 2022 outperformance are related to pent-up demand from the pandemic. Live Nation operates numerous businesses, such as the operation of live music events through Live Nation, the ownership and management of venues, as well as the sale of tickets to live events through Ticket Master. Live Nation is a great company that will continue to expand its business as long as consumers remain strong and continue to spend. Live Nation has continued to be a great comeback story after the depths of the pandemic when live events were largely shuttered around the world.