Should You Buy Live Nation Entertainment Stock Before Feb. 19?

Core Viewpoint - Live Nation Entertainment is facing a dilemma for investors as it prepares for its fourth-quarter earnings call, with stock performance lagging behind the broader market and uncertainty surrounding post-earnings reactions [1]. Financial Performance - Live Nation's stock has decreased by 4% over the past year, while the broader market has increased by approximately 12% [1]. - The current market capitalization of Live Nation is $37 billion, with a current stock price of $158.27 [2]. - The gross margin stands at 22.63% [2]. Concert Demand and Growth - The company reported a 60% year-over-year increase in global show count for Q3 2025, contributing an additional $40 million in profit from the concert segment [2]. - Management is optimistic about 2026, indicating that ticket sales are already running in double digits ahead of the previous year [2]. - International growth is significant, with fan attendance outside the U.S. expected to surpass domestic numbers for the first time, particularly in Latin America and several European countries [3]. Ticketmaster and Resale Policies - Ticketmaster has taken measures against scalpers and bots, canceling over a million accounts, which may impact near-term profits by a low-to-mid single-digit percentage [4]. - Live Nation is actively supporting ticket resale reform, including backing legislative efforts to cap resale prices in New York and California [5][6]. - The company is also advocating for broader ticketing reform alongside artists, which may enhance its consumer-friendly image while potentially benefiting its primary platform [8]. Regulatory Environment - The Department of Justice's antitrust trial is scheduled for March, with Live Nation expressing confidence in its legal position, although regulatory uncertainty may affect stock enthusiasm [9]. Earnings Call Insights - Investors should pay attention to updates on 2026 concert demand, shifts in consumer spending patterns, and the impact of Ticketmaster's anti-fraud measures during the upcoming earnings call [10]. - The stock has shown volatility over the past year, trading at a high price-to-earnings ratio of 115, and has experienced mixed quarterly updates, including negative surprises in the last three reports [11].