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Live Nation Shares Drop After Eight Killed in Concert Stampede

Live Nation is "heartbroken" by the incident at a Houston concert and will continue to assist local authorities in their investigations.
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Shares of entertainment group Live Nation Entertainment  (LYV) - Get Live Nation Entertainment, Inc. Report fell on Monday.

The Beverly Hills, Calif., owns the promoter of the Houston music event where on Saturday eight people were killed in a stampede.

Live Nation said it was "heartbroken" by the tragedy and will continue to actively assist local authorities in their investigations.

The stock recently traded at $117.25, down 5%. Just last week, it soared 23% amid investor enthusiasm over Americans’ return to live entertainment events. It benefited from a strong earnings report Thursday.

Live Nation swung to a profit in the third quarter and reported higher-than-expected revenue.

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Demand that built up during the pandemic generated ticket-price increases and more spending at live events for t-shirts, hot dogs, etc.

Live Nation, which owns Ticketmaster and Live Nation Concerts, posted net income of $46.9 million, or 19 cents a share, for the third quarter, reversing a loss of $528.9 million, or $2.45 a share, in the pandemic-depressed year-earlier quarter.

Revenue skyrocketed by a factor of almost 15, to $2.7 billion from $184 million a year earlier. The latest figure blew away the FactSet analyst consensus of $1.92 billion.

Before the incident, Morningstar analyst on Thursday Neil Macker expressed optimism for the company.

“While we remain concerned about the lingering threat of new lockdown restrictions due to the spread of the delta variant, the firm appears to be on track to a recovery to prepandemic levels,” he wrote in a commentary.

“We are maintaining our narrow moat and plan to raise our $78 fair value estimate to account for the increasing strength of the pipeline and higher audience willingness to return than we expected.”