3 Cheap Entertainment Stocks Just Starting to Take Off

Core Viewpoint - The entertainment sector is adapting to inflationary pressures, with a potential rebound in consumer spending as savings are rebuilt, making entertainment a necessity for many consumers [1][2]. Group 1: Netflix (NFLX) - Netflix has experienced a significant stock increase of over 57% in the past year, driven by its successful transition to an ad-based subscription model [3][4]. - Analyst Benjamin Swinburne from Morgan Stanley projects a bullish price target of $850 for Netflix, highlighting the growth potential in its advertising business and its ability to produce engaging content [4]. - Despite challenges such as price hikes and password-sharing crackdowns, Netflix remains a high-value subscription service [5]. Group 2: Live Nation (LYV) - Live Nation is positioned as a strong player in the experience market, particularly appealing to Millennials and Gen Z, with a robust market share [6]. - Recent negative headlines, including a Ticketmaster data breach affecting 560 million users and regulatory scrutiny over monopolistic practices, have raised concerns for shareholders [7]. - The stock's recent decline presents a long-term buying opportunity, as it remains over 25% below its early 2022 highs, while the long-term outlook remains positive [8]. Group 3: Royal Caribbean Cruise Lines (RCL) - Royal Caribbean has shown impressive performance with a stock increase of over 25% year-to-date, reaching new all-time highs [9]. - Despite management's cautious outlook on booking demand for the upcoming summer season, the company is focused on reducing debt and investing in growth initiatives, making it a strong long-term hold [10].