11 Best Entertainment Stocks to Buy According to Wall Street

Core Insights - Entertainment stocks are gaining attention as investors shift focus from previously dominant sectors, with an emphasis on digital engagement, streaming, gaming, and media platforms [1] - The communication services sector, which includes many entertainment companies, is expected to perform well, driven by advancements in AI and a shift towards high-margin business models [2] Industry Overview - Communication services stocks are projected to be the best-performing sector in 2025, primarily due to the AI trade, with AI expected to be a key driver in 2026 [2] - The sector is experiencing higher margins, reflecting a structural shift towards more efficient business models driven by innovation, scale, and automation [2] Company Highlights - Live Nation Entertainment, Inc. (NYSE:LYV): - Potential upside of 7.41% with 61 hedge fund holders [7] - Price target lowered to $174 from $176 by Roth Capital, maintaining a Buy rating, citing resilience against AI disruption and renewed investor interest due to reduced antitrust concerns [8] - Announced acquisition of ForumNet Group, expected to enhance fan experience and sustainability initiatives [9][10] - Sphere Entertainment Co. (NYSE:SPHR): - Potential upside of 11.50% with 1 hedge fund holder [11] - Price target raised to $135 from $105 by Morgan Stanley, maintaining an Overweight rating due to strong performance from The Wizard of Oz [11] - Reported fourth-quarter revenue of $394.28 million, exceeding consensus estimates, and plans for global expansion [13]