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Misha Solodovnikov Discusses the Entertainment Industry Stocks to Watch

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Misha Solodovnikov

Misha Solodovnikov is an entrepreneur and investor. In the following article, Misha discusses a few of the entertainment industry stocks that may provide the biggest return on your investments in 2023.

It’s very difficult to determine anything for sure in today’s stock market, but entertainment stocks are a different story.

Even after the pandemic’s quarantine-induced entertainment-at-home years, movie, TV, music, and other entertainment stocks remain hugely profitable and attractive to investors, whether they are new to the stock market game or seasoned pros.

World Wrestling Entertainment

Misha Solodovnikov notes that the movie industry wasn’t the only entertainment sector to take a hit during the pandemic. The WWE’s bread-and-butter is a regular schedule of live events across the country and several big pay-per-view events throughout the year.

The company took a massive financial hit in 2020 and 2021, but rebounded sharply in 2022 with the return of live — and expensive — ticketed events, higher rights fees for its weekly programs, and production of a slew of original series.

By heading into streaming partnerships with Spotify and Peacock, the WWE’s fortunes seem certain to rise even more from here on, according to Misha Solodovnikov.

The Walt Disney Company

Despite experiencing financial ups and downs for decades, those of the past 10 years have been very fortunate for the venerable Walt Disney Company. Adding Marvel, Star Wars, and Pixar to its already-extensive catalog of movies and television properties has boosted the company to new heights, even throughout the pandemic.

While revenue from its theme parks and film divisions took hits during COVID-19 restrictions, both are recovering nicely in the post-pandemic era. Oh, and don’t forget the incredible performance of Disney+, the company’s well-thought-out foray into streaming.

During 2022’s fourth quarter, Disney+ reported 164.2 million global subscribers. And, if you count additional bundle subscribers to Disney+, ESPN+, and Hulu, that number rises to 235.7 billion. That’s more subscribers than Netflix has.

Roku

Speaking of streaming, Misha Solodovnikov observes how Roku has continued to set itself apart from the increasingly crowded pack of digital media players. At the end of 2022, Roku stocks were up an average of 5% and beat analysts’ expectations for growth. By the end of the year, Roku’s revenue rose by 12% compared to 2021.

In a shareholders’ letter in the third quarter of 2022, the company heralded its meaningful growth and engagement numbers, stating that its streaming hours rose over 90% year to year.

While many stockholders may gravitate toward individual streamers, it’s streaming technology companies like Roku that may offer the best return on investment.

Spotify

Misha Solodovnikov comments that, with a huge customer base (around 480 active users and 190 million subscribers), the Swedish music streaming platform has developed a lucrative business model since its 2018 debut on the stock market.

It offers both free and paid versions, with most of the revenue primarily made through advertising, and it has wisely aligned its services with Tinder and Netflix. And, after being upgraded by Wells Fargo, the company’s stock has bounced back this month after some recent losses.

Misha SolodovnikovTake-Two Interactive Software

Though it doesn’t quite have the same name recognition as other video game companies like Electronic Arts, Take-Two has seen revenue growth in 2023 by 62.4% compared to the previous year, and expects revenue to reach as high as $1.48 billion by next quarter.

The parent company of 2K Games and Rockstar Games, Take-Two continues to diversify its offerings by developing games for mobile devices, consoles, and personal computers.
It’s also home to some of the biggest video game series of all time, including “Grand Theft Auto” and “Red Dead Redemption,” which have rewarded Take-Two with huge growth through the last 10 years.

Expect Take-Two to prioritize its mobile offerings in 2023, especially as it pursues acquiring Zynga, a longtime leader in mobile gaming.

Endeavor Group Holdings

California-based Endeavor Group Holdings isn’t just a talent agency, though it is the parent company of two of the biggest: WME and IMG. As a sports and entertainment company, it has attracted the attention of numerous prominent hedge funds, including Silver Lake Partners.

Why is Endeavor so popular, though? The truth is that it’s mainly due to its sports holdings. Misha Solodovnikov explains that Endeavor owns the Ultimate Fighting Championship (UFC), the largest mixed martial arts promotion in the world, as well as the Miami Open and Pro Bull Riders.

Last fall, it jumped into a new sports entertainment sector with its $1.2 billion purchase of OpenBet, a sports betting company. That means it’s entering a fast-growing and increasingly lucrative revenue stream as sports betting rapidly becomes more common in the United States.