All eyes are on the stock market as a period of uncertainty lowers stock values. But as the S&P 500 fell seven percent at the start of the week, live event companies are particularly hurt, with some stocks hitting 52-week lows.
Live Nation Entertainment (LYV) touched a 52-week high of $ 76.08 per share less than a month ago, but has slipped to a current rate of $ 48 and is changing. The company is now flirting with its 52-week low of $ 46.01. Eventbrite (EB) saw its shares drop to a 52-week low of just under $ 12 per share.
Additionally, Live Nation also saw its independent director Ariel Emanuel sell his 97% stake in the company. According to Simply Wall Street, Emanuel recently made $ 4.2 million by selling his shares for about $ 58.25 each. The post noted that the entertainment giant has seen more insider sales in the past year than insider trades of more shares.
Market concerns revolve around the global coronavirus (COVID-19) which has infected more than 100,000. As health and government officials warn of the spread of the virus and call for preventative measures, the healthcare industry live events were among the most affected. The number of top shows and events that have been canceled due to coronavirus concerns continues to rise, with the most notable to date being SXSW and Ultra Music Festival and the BNP Paribas Open tennis tournament.
Live Nation CEO Michael Rapino previously downplayed any drastic effect the coronavirus would have on the live events industry, noting that the timing of the global outbreak was ahead of the company’s busy season for them. summer events.
“Most of our business doesn’t start until mid-June,” Rapino said. “So the next few months we’re going to have cancellations, I guess, here and there at some arenas and clubs, but the heart of the matter is this summer.
“When you have a month, two months – every time you cancel in advance, there’s actually no charge incurred at the moment, the artist isn’t at the show, people aren’t. in the room, you haven’t paid the cost, ”he continued. “So that’s – the simplest economic challenge for us is to reroute and reschedule a show at no cost to us. “
However, with dozens of live events threatened and stocks facing equal uncertainty, the industry could be facing a steep decline for now.