LYV - Why Live Nation AMC Entertainment and National CineMedia Stocks Dropped 10% and More Today
With the Dow, the Nasdaq, and the S&P 500 stock indexes all down close to 2% at 1 p.m. EDT on Friday, it's looking like this week will end on another down note. Shares of companies tied to the entertainment industry are being hit particularly hard today, with concert promoter and ticket retailer Live Nation Entertainment (NYSE: LYV) down 11.5%; cinema operator AMC Entertainment (NYSE: AMC) off 8.5%; and National CineMedia (NASDAQ: NCMI), which sells ad space for display before movies start, trading 10% lower.
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This morning, analysts at Morgan Stanley cut their price target on Live Nation in half, citing "near zero" visibility on when social-distancing advisories will be lifted, and concerts can begin running again. Morgan Stanley hopes to see Live Nation back up and running by July, but is not discounting the possibility that it will take until October for things to return to normal.