What are the best stocks to invest in? 4 entertainment actions you should know

Entertainment stocks are a sector of the stock market that includes companies involved in the production and distribution of entertainment products and services. The sector includes a wide range of companies, from movie studios and streaming services to video game developers and more. Additionally, stocks in the entertainment sector tend to be highly volatile, as they are highly dependent on consumer spending habits.

This means that when the economy is doing well, people are more likely to spend money on leisure activities, which can drive up the stock price of entertainment companies. However, during economic downturns, people often cut back on entertainment spending, which leads to lower stock prices. For investors, this volatility can be an opportunity to buy stocks at a discount during tough economic times and sell them at a profit when the economy recovers.

Given the current state of the economy, entertainment stocks can be an attractive investment for risk-tolerant investors. With that in mind, here are four main entertainment actions to be checked on the stock market today.

Entertainment stocks to buy [Or Sell] Now

1. Roblox (RBLX Stock)

Starting on that list today is a US-based tech entertainment company Roblox Company (RBLX). Specifically, Roblox operates an online video game platform that allows gamers to create, develop, and monetize games or experiences for other gamers. Simply put, the company offers its developers a hybrid of game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. For a sense of scale, last month Roblox announced that its average daily active user count in Q2 2022 was 52.2 million.

Recent RBLX Stock News

In September, Roblox announced key metrics for August 2022. Taking a dive, the company said its estimated revenue was between $208 million and $211 million. That’s about 22% to 24% over the same period a year ago. Additionally, Roblox said its daily active users (DAUs) for August were 59.9 million, or 24% on a yearly basis.

Apart from that, last month, Roblox Corporation released its Q2 2022 financial results. In the report, Roblox reported a loss of $0.30 per share in Q2 2022, along with revenue of $591.2 million. of dollars. This is compared to street consensus estimates of a loss of $0.23 per share with revenue of $658.5 million. Meanwhile, Roblox reported a 30.2% increase in revenue year over year. Additionally, the company reported that its average number of daily active users (DAUs) grew 21% year-over-year to 52.2 million.

RBLX Stock Chart

So far this year, Roblox shares have fallen over 63%. On Thursday morning, RBLX stock was down another 5% to $36.11 per share. Given that, do you think now is the right time to invest in Roblox stock for a buy-and-hold opportunity?

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2. Netflix (NFLX Stock)

After that, let’s take a look at the streaming giant Netflix Inc. (NFLX). For starters, Netflix’s core business is an on-demand video streaming service. Moreover, the company’s platform is available in almost every country in the world. Netflix primarily generates revenue from subscriptions to its eponymous service.

Specifically, the company offers its subscribers a wide variety of TV shows, movies, anime, documentaries, and more. Meanwhile, the company’s business model allows users to watch as much as they want, when they want, ad-free for a monthly subscription. For an idea of ​​scale, Netflix today has over 200 million paid subscriptions spread across 190 countries around the world.

Recent NFLX Stock News

Then this month, Netflix announced that it would release its third quarter 2022 financial results on Tuesday, October 18, 2022, after market close. In the meantime, let’s take a look at Netflix’s performance in the second quarter of 2022.

In July, the company announced better than expected financial results for the 2nd quarter of 2022. In detail, Netflix announced earnings of $3.20 per share and revenue of $7.97 billion for the second quarter. quarter 2022. Analyst consensus estimates for the second quarter were earnings. of $2.95 per share and revenue of $8.03 billion. In addition, Netflix posted a 9% increase in sales in the second quarter.

Additionally, Netflix reported a loss of 970,000 subscribers for Q2 2022. However, this figure was higher than analysts’ estimates of a loss of 2 million subscribers for Q2. actually came under estimates for a loss of 2 million subscribers for the second quarter.

NFLX Stock Chart

In the past month of trading, Netflix stock has recovered more than 7% in Wednesday morning’s trading session to $240.72 per share. Meanwhile, NFLX shares are still down 65.65% from their 52-week high of $700.99 per share. With that in mind, maybe now is the time to add NFLX stock to your long-term portfolio at its current price levels?

Netflix Stock
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3. Walt Disney Company (DIS shares)

Then we have one of the largest entertainment and media companies in the world Walt Disney Company (SAY). To cut to the chase, the core business of the Walt Disney Company is the production of motion pictures and television shows. In addition to this, Walt Disney also owns and operates theme parks and resorts around the world. Notably, these include names like Disneyland, Walt Disney World, and Tokyo Disney Resort. Additionally, Walt Disney’s consumer products division markets a wide range of products based on its film and television properties, including toys, apparel, and its Disney+ video streaming platform.

DIS Recent Stock News

In August, The Walt Disney Company announced a beat for its third-quarter 2022 financial results. In the third quarter, the company posted earnings of $1.09 per share, with revenue of $21.5 billion. . This is compared to street consensus estimates, which were earnings of $0.94 per share with revenue of $20.1 billion. Additionally, The Walt Disney Company reported a 26.3% increase in revenue over the same period in 2021. Additionally, Disney Parks, Experiences and Merchandise revenue for Q3 2022 reached 7 $.4 billion, compared to $4.3 billion in the third quarter of 2021.

Additionally, Bob Chapek, Chief Executive Officer of The Walt Disney Company, commented on the third quarter results: “We had an excellent quarter, with our world-class creative and commercial teams driving outstanding performances at our domestic theme parks, strong increases in live sports viewership and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added during the third fiscal quarter, we now have 221 million total subscriptions across our streaming offerings.

DIS Stock Chart

In 2022 so far, DIS stock is still down more than 37% in Thursday’s mid-morning trading session at $97.27 per share. Overall, should investors pay close attention to Walt Disney shares in the stock market today?

Stock DIS
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4. Spotify (SPOT stock)

Last but not least, Spotify Technology (SPOT) is a music streaming service that provides users with the ability to listen to their favorite tracks anytime, anywhere. The company’s platform allows users to discover the latest singles and albums, playlists and a variety of songs in different genres. For an idea of ​​scale, in the second quarter of 2022, Spotify has 433 million users, including 188 million premium subscribers, in 183 markets around the world.

SPOT Recent Stock Market News

At the end of July, Spotify released its second quarter 2022 financial results. Specifically, Spotify recorded a loss of $0.91 per share in the second quarter of 2022, with revenue of $3.1 billion. Consensus estimates for Q2 2022 were a loss of $0.68 per share, along with revenue of $3.0 billion. Then, the company recorded an 8.7% increase in revenue over the same period, in 2021. In addition to this, Spotify commented in its earnings presentation to shareholders that it expects revenue of approximately $3.04 billion for the third quarter.

The company said this in its statement to shareholders, “Almost all of our key metrics beat expectations in Q2’22, led by MAU and subscriber outperformance, healthy revenue growth and a slightly better operating loss. Most notably, MAU’s performance accelerated this quarter, with net additions hitting a second-quarter record of 19 million.

SPOT Stock Chart

Shares of Spotify were beaten more than 63% in Wednesday morning’s trading session at $88.03 per share. As it stands, SPOT stock is currently trading 71.18% off its 52-week high of $305.60 per share. With that in mind, do you think SPOT stocks can be considered undervalued right now?

SPOT stock chart
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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