10 Best Entertainment Stocks To Buy According to Analysts

6. Gaia, Inc. (NASDAQ:GAIA)

Analysts’ Upside Potential: 38.89%

Number of Hedge Funds: 4 

Gaia, Inc. (NASDAQ:GAIA) is a media entertainment and community company that operates a global video streaming service. It focuses on providing content related to personal growth, wellness, and alternative healing. The company serves members in approximately 185 countries and offers content in multiple languages, including English, Spanish, French, and German.

During its fiscal third quarter 2024 earnings call management announced a partnership with ElevenLabs, who will be Gaia, Inc.’s (NASDAQ:GAIA) official AI partner to provide dubbing and translation services across various languages. Management sees this as an opportunity to boost its engagement internationally. The company is already growing its user base substantially as members count increased 7% year-over-year during the third quarter to reach 846,000.

The increased member count topped with an increase of $2 in subscription fees for all members led its revenue to grow 10% year-over-year. Gaia, Inc. (NASDAQ:GAIA) generated $22.2 million in revenue and also marked the sixth consecutive quarter of positive operating and free cash flow. Management remains confident of an even better next quarter due to the increased subscription fees. It expects that even if its customer base remains flat the fourth quarter revenue can hit at least $24 million.

Artko Capital stated the following regarding Gaia, Inc. (NASDAQ:GAIA) in its fourth quarter 2023 investor letter:

“As discussed in our 2Q23 Partner Letter, we sold the remainder of our original 8-year-old position in Gaia, Inc. (NASDAQ:GAIA). While we still made substantial returns in our initial investment, with multiple position reduction sales above $10.00, in recent years, the position has been a significant detractor from performance. The expected fundamentals did not materialize, and key management departures led us to deploy the capital into other positions.”