(photo: Rick Tap)
Following a series of coronavirus-fueled stock-price dips, Live Nation has experienced something of a market rebound.
The concert promotion giant, which is traded under the symbol LYV, saw its per-share price increase today (Thursday) by 11.6 percent, from $29.03 to $32.91. Though Live Nation’s value is still approximately one-half of where it was one month ago, it is a noteworthy improvement from Wednesday’s five-year low of $21.70. Before the COVID-19 pandemic started affecting the U.S. in earnest, Live Nation was worth in excess of $75 per share.
Overall stock market gains accompanied Live Nation’s modest uptick, as the S&P 500 grew by .47 percent and the NASDAQ jumped by 2.3 percent on the heels of an especially turbulent week. Yesterday, President Trump signed a preliminary coronavirus-relief bill into law, and Congress is drafting legislation for a $1 trillion stimulus package presently.
Also helping Live Nation was an early repayment of a margin loan by Liberty Media. The $130 million cash repayment, confirmed to Digital Music News this afternoon, lowers the risk of further selloffs while beefing up Live Nation’s cash holdings.
While today’s market gains represent a small-but-encouraging step in the right direction, some economists and health professionals are warning that it could be months before the COVID-19 pandemic passes and the global economy begins to recover.
Overnight, New York reported approximately 1,700 new COVID-19 cases, and two members of Congress, Representative Ben McAdams and Representative Mario Diaz-Balart, confirmed their coronavirus diagnoses. COVID-19 testing is ramping up throughout the United States, and consequently, domestic coronavirus totals are hiking radically.
Besides the mentioned market gains, a few relatively positive COVID-19 developments have come to light during the last 24 hours. First, a preliminary study conducted by Chinese researchers and scientists found that warmer temperatures and increased humidity could curb COVID-19’s spread. Next, the Food and Drug Administration (FDA) fast-tracked the approval process for a malaria drug that effectively treats the symptoms of COVID-19.
In a show of confidence last week, Live Nation CEO Michael Rapino purchased approximately $1 million of his company’s shares. Several Live Nation executives and board members followed suit, and billionaire Mark Cuban revealed that he too went in on the Beverly Hills-based concert promoter. Those purchases quickly took a hit as Live Nation shares declined, though today’s gains helped to ease those declines.