Although Live Nation CEO Michael Rapino downplayed the probable impact of the coronavirus (COVID-19) on business operations just last week, the concert-promotion company’s stock value tumbled today as event cancellations—and refund requests—continued to accumulate.
Live Nation, traded under the symbol LYV, closed at $52.99 per share on Friday. At the end of today’s trading window, the company’s per-price share had plummeted to $47.26, for a total loss of approximately 11 percent. One month ago, shares of LYV were trading at $72.89 (and rising), with the 30-day drop amounting to more than 35% by the closing bell Monday.
Live Nation recently reported solid growth in its 2019 earnings, and the stock had accordingly stayed strong through most of February.
But as more coronavirus cases were disclosed and public fear deepened, government officials and event organizers were forced to cancel an array of much-anticipated concerts and music festivals.
Since the start of March alone, SXSW, Collision Conference, Tomorrowland Winter, Ultra Miami, Ultra Abu Dhabi, and Slipknot’s Asia tour dates, to name just some, have been given the ax.
It’s expected that more concerts and festivals will be indefinitely postponed in the coming weeks; many are speculating that COVID-19 fears will prompt health officers to scrap Coachella.
Consequently, Live Nation’s stock-price descent began on February 20th and picked up steam into March. February’s high of approximately $76 per share is over 33 percent greater than the current per-price value, and if today’s poor showing is any indication, the company may lose additional worth in the coming weeks.
Earlier today, a Washington D.C. priest tested positive for COVID-19 and was placed in voluntary self-quarantine. The infection’s international presence appears to be growing, especially in Italy, the hardest-hit European nation to date.
In response to the COVID-19 outbreak in Italy, Prime Minister Giuseppe Conte has signed an emergency measure that prohibits residents from entering or leaving several regions, including the cities of Venice and Milan, for non-medical/work-related reasons. The travel restrictions will remain in place until April 3rd.
Italy has reported nearly 7,500 COVID-19 cases to date.