Live Nation (LYV) has fallen around 7% so far Tuesday morning after news broke Monday after the market closed that the entertainment company could be in hot water with the Justice Department.
While both Live Nation Entertainment Inc. and the Justice Department themselves chose to keep quiet on the matter, a source at Wall Street Journal is reporting an antitrust suit could be headed the concert-ticking provider’s way. We won’t have to wait long to find out if this is true, either – the suit could be made public by May.
There have been complaints that the entertainment company has had a stranglehold on ticketing for some time. The allegation is that concert venues were deterred or even downright disallowed from working with other promoters or ticket sellers if an artist had a deal with Live Nation.
The company has also come under fire for its deceptive ticketing system that results in hidden fees and a lack of transparency. Executive vice president for corporate and regulatory affairs at Live Nation, Dan Wall, pushed the blame to artists and their teams. Wall says that Live Nation has no say in what it costs to get into an event.
The supposed investigation has been well underway for years now. It picked up steam amidst the Taylor Swift & Ticketmaster turmoil from 2022 in which fans were unable to get access to tickets due to reseller activity, leading to the Ticketmaster site crashing and a subsequent fallout amidst the Swifties.
Live Nation spoke to the ongoing investigation approximately 6 months ago and was unconcerned. Executives doubted there was anything fundamentally wrong with the company’s business practices, and that nothing would come from the probing.
That being said, we’ll have to wait and see what developments come out over the next few weeks. In the meantime, LYV is now down more than 10% in the last month and today’s performance won’t help turn that trend around.
So, if you’re currently invested in this stock, is it time to cut losses before things get worse? Or, should you weather the storm? We’ve taken a look through the VectorVest stock software and have 3 things you need to know before you make your next move.
LYV Has Very Good Upside Potential and Good Safety Despite Poor Timing
VectorVest is a proprietary stock rating system that helps you win more trades with less work, eliminating stress, uncertainty, and human error from your decision-making process.
You’re given all the information you need to make calculated trades in 3 ratings: relative value (RV), relative safety (RS), and relative timing (RT). Each sits on a scale of 0.00-2.00 with 1.00 being the average, allowing for quick and easy interpretation.
Better yet, VectorVest gives you a clear buy, sell, or hold recommendation based on the overall VST rating for any given stock at any given time. Here’s what we found for LYV:
- Very Good Upside Potential: The RV rating draws a comparison between a stock’s long-term price appreciation potential (forecasted 3 years out), AAA corporate bond rates, and risk. This gives you far superior insight than the typical comparison of price to value alone. LYV has a very good RV rating of 1.37.
- Good Safety: The RS rating is a risk indicator. It’s computed through an analysis of the company’s financial consistency & predictability, debt-to-equity ratio, business longevity, sales volume, price volatility, and other factors. The RS rating of 1.26 is good for LYV.
- Poor Timing: The RT rating is based on the direction, dynamics, and magnitude of the stock’s price movement. It’s calculated day over day, week over week, quarter over quarter, and year over year. The RT rating reflects the recent performance for LYV at 0.82, which is considered poor.
The overall VST rating of 1.14 is good for LYV. VectorVest currently rates this stock a HOLD, but you’re going to want to keep yourself up to date as this situation is evolving. Learn more through a free stock analysis at VectorVest today and transform the way you trade for the better!
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VectorVest advocates buying safe, undervalued stocks, rising in price. LYV is down more than 7% today after news leaked that an investigation by the Justice Department may be coming to a head in the form of an antitrust suit. The stock itself may have poor timing, but it still has very good upside potential and good safety.
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