Stocks To Watch This Week? 4 Entertainment Stocks To Know

Could now be a good time to bet on entertainment stocks again?
Stocks To Watch This Week? 4 Entertainment Stocks To Know
Image credit: StockMarket.com via StockMarket

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.
6 min read
This story originally appeared on StockMarket

Do You Have These Entertainment Stocks On Your Watchlist For This Week?

Amongst all the industries booming throughout the pandemic, entertainment stocks have been one of the best investments. Anyone investing in the stock market would know that streaming content providers have been the hot stocks to buy. However, as the country is slowly opening up, these investment options are no longer confined to stay-at-home plays. Now, that doesn’t mean some of these top entertainment stocks aren’t worth the investment anymore. It just means there could be a broader range of investment options available to us right now.

The strategy of betting on top streaming stocks like Netflix (NASDAQ: NFLX) to reap strong gains may no longer be the most attractive option. That’s because Netflix reported a dramatic slowdown in subscribers this week. As a result, many fear this slowdown in subscriber growth is going to show up in other top streaming stocks. Indeed, if it’s a similar offering, there’s a good chance there will be a slowdown as well. But Roku (NASDAQ: ROKU), has one thing that Netflix doesn’t have: sports. That said, if you are still looking for streaming stocks to buy, ROKU stock may be the better stock today. 

Now, the vaccination rate continues to ramp up in the U.S. As a result, there’s a great chance that traditional leisure activities that involve big crowds will be back with a vengeance. Personally, I would still stick with home entertainment stocks. However, as many are being inoculated now, achieving herd immunity is not a distant goal. For these reasons, would you still bet on these entertainment stocks in the stock market today?

Entertainment Stocks To Watch Before May

MGM Resorts

First up we have MGM Resorts International. MGM is a global hospitality and entertainment company that operates a series of destination resorts across the U.S. Like most of its peers in the hospitality industry, MGM was hit hard at the onslaught of the pandemic. The company’s key tourism business was virtually halted because of this.

entertainment stocks (MGM stock)
Source: TD Ameritrade TOS

However, MGM leveraged its existing casino infrastructure and is now banking on the online sports betting boom. With growing interest in online gambling as a means of entertainment worldwide, MGM stock could be a unique investment opportunity. Evidently, investors appear to think so seeing as MGM stock has almost quadrupled in value over the past year.

Following MGM Resorts’ investor presentation day this week, many analysts have issued a bullish research note and new target price for the company. Amongst them, Union Gaming set a price target of $52 on MGM stock. That represents a potential upside of over 26%. The bullish rating comes after the company predicted it would achieve second place in sports betting and online betting with its BetMGM platform. With MGM using its pandemic-grown business to fuel future business strategies, could MGM stock be worth watching now?

[Read More] Best Biotech Stocks To Buy In April? 4 To Watch On Monday

DraftKings Inc.

Considering major sports have since returned, DraftKings is one entertainment stock investors are buying right now. If you’re a big fan of Cathie Wood, you would know that she has been snapping up DKNG stock since the start of the year. And she went on a shopping spree again yesterday whereby the ARK Innovation ETF bought another 266,488 shares of DraftKings. Wood is clearly a big name in the investment world, and many investors are trying to replicate her success by following her investment strategies. And if you buy DKNG stocks today, you are investing alongside the superstar investor.

top entertainment stocks (DKNG stock)
Source: TD Ameritrade TOS

The company’s stock price has been relatively steady when the market continues to exhibit signs of weaknesses. Perhaps, it could be due to a series of analyst upgrades and strong quarterly reports.

But more importantly, there’s huge potential in the New York gaming market after the state-approved online sports betting model. This bodes well for DKNG stock when it gets the license. There are good reasons to believe that DKNG stock has more room to grow in the long run. If you are bullish on the online gaming niche, would you bet on DKNG stock today for long-term growth?

[Read More] Arrival Vs Lucid Motors: Which Of These Electric Vehicle Stocks Is A Better Buy?

AMC Entertainment Holdings

AMC Entertainment Holdings is another trending name to watch in the stock market today. As the biggest cinema operator in the world, it is no surprise that AMC has seen the biggest fall in revenue over the past year. The cinema operator was heavily in debt and facing increasing competition from in-house entertainment options. As a result, many investors have been shying away from AMC stock. But not this week.

best entertainment stocks (AMC stock)
Source: TD Ameritrade TOS

The rally we saw with AMC stock on Thursday came as investors celebrate their new holiday with hashtag #AMCDAY on social media. So, what do investors need to know about this holiday and where does this idea come from? The idea of holding a holiday for AMC stock appears to be inspired by Doge Day on Tuesday. And the main goal here is similar, that is to snap up AMC stock and push the stock higher.

While the initiative clearly worked, any investors thinking of jumping in because of this should practice caution. After all, Dogecoin suffered a considerable drop after the hype. Could the same happen to AMC stock?

[Read More] 4 Renewable Energy Stocks To Watch Before May

Walt Disney

When it comes to putting a list of entertainment stocks to watch, it’s hard not to have Walt Disney on the list. From its timeless classics turned theme parks to its massive portfolio of legendary IPs, the company has plenty to offer. With the strong uptick in vaccination rate in the U.S., investors are increasingly optimistic with DIS stock as the theme parks may reopen sooner than consensus estimates. However, we can’t ignore the fact that the recent rally in DIS Stock was driven by a strong performance of its streaming business, Disney+. After adapting its massive media portfolio to fit the streaming mold, Disney continues to make it big with homebound consumers.

best stocks to buy now (DIS stock)
Source: TD Ameritrade TOS

Disney+’s ability to boast a total global subscriber count of 100 million subscribers is something worth cheering on. But after Netflix’s underwhelming quarter, investors are also wondering if the same could happen to other streaming content providers. While I don’t have any solid numbers on hand, a slowdown in subscribers growth is inevitable.

After all, the subscriber growth we have seen in the past year clearly isn’t sustainable. But the good news here is, the company has theme parks that will benefit as the economy reopens. The question is, will those be enough to keep the momentum going for DIS stock?

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Use code MARKET2021 through 4/24/21 to save on 12 marketing books for entrepreneurs that are recommended by entrepreneurs:
  • Digital Marketing Handbook
  • No B.S. Guide to Direct Response Social Media Marketing
  • Ultimate Guide to Youtube for Business
  • And more
Discover a better way to hire freelancers. From business to marketing, sales, finance, design, technology, and more, we have the freelancers you need to tackle your most important work and projects, on-demand.

Latest on Entrepreneur