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Shares To See This Week? four leisure shares to know

April
25, 2021

6 min read

This story originally appeared on StockMarket

Do you have these entertainment stocks on your watchlist for this week?

Among all the industries that boomed during the pandemic, entertainment stocks were one of the best investments. Anyone investing in the stock market would know that streaming content providers were the hottest stocks to buy. However, as the country slowly opens up, these investment options are no longer limited to games that stay at home. That doesn't mean some of these top entertainment stocks are no longer worth the investment. It just means that we may have a wider range of investment options available to us right now.

The strategy of betting on top streaming stocks like Netflix (NASDAQ: NFLX) for strong profits may no longer be the most attractive option. This is because Netflix reported a dramatic slowdown in subscribers this week. As a result, many fear this slowdown in subscriber growth will be felt in other top streaming stocks. If it's a similar offering, there's a good chance it's slowing down too. But Roku (NASDAQ: ROKU) has one thing that Netflix doesn't have: sports. That said, if you're still looking for streaming stocks to buy into, ROKU stock might be a better stock today.

Now the vaccination rate in the US continues to rise. As a result, there is a great chance that traditional recreational activities involving large crowds will return with a vengeance. Personally, I'd still stick with home entertainment stocks. However, with many currently being vaccinated, achieving herd immunity is not a distant goal. For these reasons, would you bet on these entertainment stocks on the stock market today?

Entertainment stocks that can be seen before May

MGM resorts

First up, we have MGM Resorts International. MGM is a global hotel and entertainment company that operates a number of destination resorts in the United States. Like most of its colleagues in the hospitality industry, MGM has been hit hard by the onslaught of the pandemic. As a result, the company's main tourism business was practically discontinued.

Source: TD Ameritrade TOS

However, MGM used its existing casino infrastructure and is now relying on the boom in online sports betting. Given the growing interest in online gambling as a means of entertainment around the world, MGM stock could represent a unique investment opportunity. Apparently, this is what investors seem to believe, as the value of MGM stock nearly quadrupled in value over the past year.

After MGM Resorts' investor presentation day this week, many analysts released an bullish research note and a new price target for the company. Among them, Union Gaming set a target price of $ 52 on MGM shares. This corresponds to a potential upward trend of over 26%. The bullish rating comes after the company predicted it would take second place in sports betting and online betting with its BetMGM platform. Could MGM stock be worth watching now if MGM is leveraging its pandemic-grown business to advance future business strategies?

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DraftKings Inc.

Given that big sports have now returned, DraftKings is an entertainment stock investors are buying right now. If you're a huge fan of Cathie Wood, you know she's been buying DKNG stock since the beginning of the year. And she went on a shopping spree again yesterday, with the ARK Innovation ETF buying another 266,488 shares of DraftKings. Wood is clearly a big name in the investment world and many investors try to replicate their success by following their investment strategies. And when you buy DKNG shares today, you are investing alongside the superstar investor.

Top entertainment shares (DKNG share)Source: TD Ameritrade TOS

The company's share price has been relatively stable when the market continues to show signs of weakness. Possibly this is due to a number of analyst upgrades and strong quarterly reports.

More importantly, however, the New York game market offers enormous potential under the nationally recognized online sports betting model. This is a good sign for DKNG stock if it receives the license. There are good reasons to believe that the DKNG share offers more room for growth in the long term. If you are bullish on the online gaming niche, would you bet on DKNG stocks today for long term growth?

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AMC Entertainment Holdings

AMC Entertainment Holdings is another trending name to watch in the stock market today. As the largest cinema operator in the world, it's not surprising that AMC saw the biggest drop in sales last year. The cinema operator was heavily in debt and faced increasing competition from internal entertainment options. As a result, many investors shy away from AMC stock. But not this week.

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

The rally we saw with AMC shares on Thursday came as investors celebrated their new holiday on social media using the hashtag #AMCDAY. What do investors need to know about this vacation and where did this idea come from? The idea of ​​holding a holiday for AMC stocks seems to be inspired by Doge Day on Tuesday. And the main goal here is similar, which is to snap up AMC stocks and drive stocks higher.

While the initiative clearly worked, investors looking to step in for this reason should exercise caution. After all, Dogecoin suffered a significant decline after the hype. Could that also happen to AMC stocks?

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Walt Disney

When it comes to making a list of entertainment stocks, it's tough not to have Walt Disney off the list. From its timeless classics turned into theme parks to its huge portfolio of iconic IPs, the company has a lot to offer. With the US vaccination rate soaring, investors are increasingly bullish on DIS stocks as theme parks may reopen earlier than consensus estimates. However, we cannot ignore that the recent rally at DIS Stock was driven by strong performance from the streaming business Disney +. After adapting its extensive media portfolio to streamline form, Disney continues to make great strides with homebound consumers.

buy best shares now (DIS share)Source: TD Ameritrade TOS

Disney + 's ability to reach a global subscriber base of 100 million subscribers is something worth cheering on. However, after Netflix's overwhelming quarter, investors are also wondering if the same could happen to other streaming content providers. While I don't have solid numbers available, a slowdown in subscriber growth is inevitable.

After all, the subscriber growth we've seen over the past year is clearly unsustainable. But the good news here is that the company has theme parks that will benefit from the reopening of the economy. The question is, will these be enough to keep the momentum going for DIS stocks?

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