Shares of Live Nation Entertainment (LYV) are down 2% despite the parent company of Ticketmaster reporting a strong profit for this year’s third quarter.
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LYV stock initially rose 5% after the company announced earnings per share (EPS) of $1.66, which was ahead of the consensus forecast of $1.61 on Wall Street. However, revenue declined about 6% to $7.65 billion for the quarter ended September 30, missing estimates of $7.75 billion.
It was Live Nation’s first revenue decline since 2021. The California-based company had been benefiting from higher prices for the concert tickets it sells, though the rate of sales appears to have slowed amid still elevated interest rates that have led consumers to pullback their discretionary spending.
Breaking Up Live Nation?
The latest financial results come months after the U.S. Department of Justice and more than two dozen American states filed a lawsuit that aims to break-up Live Nation, which has been accused of monopolistic practices that inflate ticket prices and hurt musicians and other artists.
The lawsuit and threats to reign in its business have not hurt Live Nation’s stock. So far in 2024, LYV stock has risen 36%, outpacing the benchmark S&P 500 index that is up 26% on the year. The company’s concert business that is mostly comprised of live music events generated $6.58 billion in Q3, making up the bulk of its revenue.
Is LYV Stock a Buy?
The stock of Live Nation has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 14 Buy and one Sell recommendations made in the last three months. There are no Hold ratings on the stock. The average LYV price target of $137.85 implies 7.99% upside from current levels.
