Live Nation stock plunges as COVID-19 takes a toll on the concert industry
The live entertainment giant has lost $1.8 billion in one day.
Live Nation stock (LYV) has gone into a tailspin as local officials’ coronavirus fears have crippled live concert attendance across the globe. Just a week and a half ago, Live Nation’s CEO, Michael Rapino, was attempting to explain the company’s dip to shareholders:
“Most of our business doesn’t start until the middle of June onwards,” Rapino stated. “So the next few months, we’ll have some cancellations, I assume, here and there in some arenas and clubs, but the heart of our business happens this summer.”
However, that dip took a nose dive yesterday, when major artists like Benny Benassi, G Jones, The Glitch Mob, and more began cancelling their tours. Live Nation reported their shares dropping an additional 16.5 percent, which equates to roughly $1.8 billion in stock market valuation. Suddenly, Rapino was no longer able to downplay the virus’ threat to his company’s business dealings.
“This is a unique time,” Rapino told the New York Times today. “Everyone has to figure out how the show goes on, and how it goes on smartly and safely.”
That figure pales in comparison to the landslide that Line Nation’s stock price has taken over the past month. LYV was worth $42.01 a share at the stock exchange’s closing bell on Wednesday, March 4, which equates to a 43.3 percent loss over the past 30 days.
As one of the world’s largest live entertainment companies, Live Nation’s reported loss goes to show just how vigorously the pandemic is effecting the world economy.
Via: Digital Music News.
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