Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Is Vivid Seats Inc. (SEAT) the Worst Communication Services Stock to Buy According to Short Sellers?

We recently compiled a list of the 10 Worst Communication Services Stocks to Buy According to Short Sellers. In this article, we are going to take a look at where Vivid Seats Inc. (NASDAQ:SEAT) stands against the other communication services stocks.

Artificial intelligence (AI) and automation are 2 of the most transformative and consequential technologies that are expected to impact telecommunications since the advent of 5G. Integration of AI into networks and operations should help in optimizing performance, automating tasks, and improving customer service. Well-established telecom companies continue to leverage AI-powered predictive analytics to track and project maintenance works so that network reliability and efficiency are maintained.

As a result of the expansion of the 5th-generation mobile network (5G), a range of telecommunication providers continue to deliver faster data speeds and greater network capacity. Wi-Fi technology pioneer Qualcomm expects that 5G should be responsible for supporting more than $13 trillion in global economic output by 2035.

As per Infopulse, in 2021, the global telecom IoT market size was pegged at $19 billion. By 2031, this should exceed the $185.5 billion mark, exhibiting a CAGR of 27.71%. One critical use case, which explains why IoT is getting traction in the sector, incorporates equipment monitoring and hazard detection.

In 2024, political ad spending is expected to be in the range of $10.2 billion and $12 billion (as per Basis Technologies). These numbers exhibit a rise of 13%-30% from the 2019-2020 election cycle. For advertising and media agencies, this can result in higher CPMs—primarily during certain periods, certain locations, and on certain channels.

Expansion of 5G Technology and Plans for 6G

5G will be more scalable and capable of handling bigger data loads, therefore, it is associated with the Internet of Things (IoT). 5G can also support advanced technologies like augmented reality (AR) and virtual reality (VR). The Wi-Fi technology pioneer believes that the development requirements of the new 5G network should expand beyond the traditional mobile networking players to segments like the automotive industry. Experts believe that the 5G value chain (which includes OEMs, operators, content creators, and the like) might support up to 22.8 million jobs, or over one job for every person in Beijing, China.

The stage is being set for the 6th generation (6G). This technology is expected to incorporate AI at the edge and in networks fully, allow reliable operation of autonomous vehicles, and automation in industrial manufacturing, and should power “smart factories.” 6G should take extended reality (XR) to brand new levels and will allow lightweight devices which can be deployed at a similar scale as today’s smartphones. Emerging capabilities such as digitization of multisensory aspects (like human senses of touch, smell, sight, and taste), improved sensor fusion and brain-computer interface should help deliver hyper-realistic experiences (such as holographic teleportation).

While 5G established a technical foundation for high-performance industrial IoT, 6G is expected to unleash the full potential of next-gen robotics, such as delivery robots, service robots, and autonomous and collaborative robots.

Communication service providers (CSPs) should start realizing the value of highly-touted 5G use cases like vehicle-to-vehicle communication, and virtual reality-based immersive metaverse networking. One of the most promising cases for CSPs is Wi-Fi upgrade—from broadband to fixed wireless access and private 5G. The use cases of 5G and operational automation will rely on CSPs’ ability to create cloud-native network platforms with end-to-end programmability.

GenAI Revolution

The global unified communications market was pegged at US$63.82 billion in 2023 and should compound at 12.70% between 2024 – 2032 (as per Polaris Market Research). This growth should stem from strong growth because of the increased usage of mobile devices and the adoption of Bring Your Device (BYOD) policies. Enhancing enterprise communication for improved productivity and cloud-based unified communication should also act as growth enablers.

Generative AI is expected to drive a seismic shift in the communication services transformation agenda. Efficiency, cost-effectiveness, improved IT services, data-driven intelligence, and network connectivity should act as the backbone of GenAI-propelled customer experience.

The communications and media companies’ top AI objectives in 2024 should optimize network performance and reduce downtime. Collectively, these are expected to improve the quality of service. These companies are planning to deploy AI for real-time detection of and response to network issues. This will help in the rollout of high-bandwidth, low-latency applications, and services. Artificial intelligence helps in driving predictive analytics which facilitates detecting and resolving network issues before the service disruption.

With more and more computing workloads being distributed throughout remote data centers, latency is expected to drop, bandwidth should increase, and organizations are expected to gain more sovereignty over their data. Edge computing enables real-time data processing, which should unlock use cases across industries— ranging from remote healthcare treatment and remote management of mining operations to sustainability solutions including smart grids optimizing energy consumption.

Our methodology

To list the 10 Worst Communication Services Stocks to Buy According to Short Sellers, we used the Finviz screener to filter out stocks catering to the broader communications sector. Next, we narrowed our list of stocks by selecting the ones having high short interest. Finally, the stocks were ranked in ascending order of their short interest.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A line of eager ticket buyers outside a theatre on opening night showing the demand for live events.

Vivid Seats Inc. (NASDAQ:SEAT)

Short % of Float (15 August 2024): 32.16%

Number of Hedge Fund Holders: 24

Vivid Seats Inc. (NASDAQ:SEAT) is an online ticket marketplace for connecting fans to live events and artists. The company is an official ticketing partner by brands in the entertainment industry offering tickets for sports, concerts, theatres, and comedy.

Short sellers believe that the company’s stock price is expected to struggle moving forward as a result of challenges, such as venue downsizing and event cancellations. This indicates that Vivid Seats Inc. (NASDAQ:SEAT) might face the risk of lower consumer demand. As a result, there are concerns regarding the company’s ability to meet its growth expectations for the upcoming year. Additionally, there was an increase in competitive performance marketing intensity. This might impact its ability to expand the market multiple.

Moreover, there are expectations of a downturn in the company’s activity within performance marketing channels. This can result in a decrease in its GOV and a marginal fall in revenue projections for 2024 and 2025.

That being said, Wall Street analysts are quite optimistic about the company’s growth prospects.  Vivid Seats Inc. (NASDAQ:SEAT)’s loyalty program and engagement initiatives resulted in a lot of repeat orders over time. The analysts believe that a strategic focus on profitable growth and the anticipation around an improved competitive landscape in 2025 should help its stock price. Analysts are quite optimistic about its inorganic growth strategies, which should help improve margins.

For example, Vivid Seats Inc. (NASDAQ:SEAT)’s acquisition of Vegas.com and introduction of the Game Center app should act as margin-accretive strategies that can drive new and returning users with high conversion rates and strong returns on advertising spend. In 2Q 2024, the company refinanced and up-sized its term loan and was able to reduce its interest rate while bringing $125 million of cash to its balance sheet. This cash balance is expected to be deployed across share repurchases and strategic M&As. For 2024, Vivid Seats Inc. (NASDAQ:SEAT) is expecting its marketplace GOV of between $4.0 billion to $4.3 billion, with revenues expected to remain between $810.0 million to $830.0 million.

Analysts at Benchmark reissued a “Buy” rating on the shares of Vivid Seats Inc. (NASDAQ:SEAT), issuing a $15.00 price target on 30th July. By the end of 1Q 2024, 24 hedge funds included the company in their portfolios with total stakes amounting to $52.7 million.

Overall SEAT ranks 1st on our list of the worst communication stocks to buy according to short sellers. While we acknowledge the potential of SEAT as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SEAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…