Live Nation stock, traded under the symbol LYV, is regaining some of the value that was lost because of the coronavirus (COVID-19) pandemic and its corresponding market shakeup.
Having passed the $75 mark in January, the concert giant’s per-share stock value held steady at over $70 through most of February. Then, as the coronavirus crisis reached Europe and the United States, medical authorities issued clear-cut warnings, and governments instituted lockdowns and large-gathering bans. In a breathtakingly-short period, Live Nation’s stock price plummeted as low as $21.70. (To be sure, this dip was accompanied by a market-wide decrease.)
Now, several factors seem to be contributing to an overall market rebound. Chinese officials are preparing to lift the lockdown they instituted in Wuhan, and the country’s COVID-19 infection rate appears to have fallen. Additionally, Senate leaders and President Trump have agreed on a $2.2 trillion stimulus package that will provide small businesses with loans and most American adults with checks, among many other benefits.
Yesterday, the Dow Jones Industrial Average posted a 2,112-point (11 percent) gain, the largest in history; the S&P 500 also experienced an upward surge.
At the time of this writing, Live Nation was trading at almost $45 per share, over double the aforementioned 52-week low (but still relatively far from the 52-week high). Previously, Live Nation CEO Michael Rapino signaled confidence in his company by purchasing roughly $1 million worth of stock. Several executives followed suit (albeit with smaller investments), and Billionaire Mark Cuban also grabbed a stake in the company.
Live Nation has indefinitely postponed each of its upcoming concerts and events, and many investors and music industry experts are speculating about when the company will resume normal operations.
While this timetable is still uncertain (and subject to change), President Trump indicated yesterday that he’d like to have the United States “opened up” by Easter, which will arrive on April 12th. Dr. Anthony Fauci, who has helped coordinate the federal government’s response to the coronavirus crisis, said that certain areas’ prevention-minded restrictions could be eased in the coming weeks, as COVID-19 testing becomes more widespread.
Nevertheless, Live Nation’s event postponement will run through at least this month’s end, at which point execs will reevaluate the coronavirus situation.