Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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8. Live Nation Entertainment, Inc. (NYSE:LYV)

D1 Capital Partners’ Equity Stake: $200.22 Million

Number of Hedge Fund Holders as of Q3 2024: 44

Live Nation Entertainment, Inc. (NYSE:LYV) is an entertainment company that operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The stock is up by more than 48% year to date as investors react to the company expanding its live event and ticketing portfolio.

Live Nation Entertainment, Inc. (NYSE:LYV) had an impressive summer concert season that propelled it to impressive third-quarter results. Its revenue in the quarter came in at $7.7 billion as earnings per share logged in at $1.66 against $1.58 expected. The company achieved the highest-ever concert profitability as adjusted operating income surged 39% to $474 million.

As expected, Live Nation Entertainment, Inc.’s (NYSE:LYV) shift to smaller venue shows has led to higher adjusted operating income but lower revenues. With ticket sales for the stadium performances off to a powerful start next year, Live Nation is well-positioned for a strong fourth quarter. Additionally, Live Nation plans to introduce 14 new or refurbished venues next year as it seeks to attract 8 million additional fans.

Management has already shared an outlook on expanding growth opportunities, driven by an unprecedented summer concert season and a record-breaking show pipeline. Management is also optimistic about Live Nation achieving double-digit growth in 2024 that should continue into 2025.

Baron Discovery Fund stated the following regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its Q3 2024 investor letter:

“We added to our position in Liberty Media Corporation – Liberty Live, a tracking stock whose primary asset is its holdings in Live Nation Entertainment, Inc. (NYSE:LYV). Live Nation, which produces live concerts and owns Ticketmaster, traded down when the Department of Justice (DOJ) sued the company for anticompetitive behavior. We added to our position in Liberty Live as we do not believe the DOJ suit will lead to the breakup of Live Nation and we believe that Live Nation trades at a valuation well below its intrinsic value. Shares of both Live Nation and Liberty Live recovered during the quarter, ending the period near their 52-week highs.”

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