Should I invest in Live Nation Entertainment (LYV)?

Baron Funds, an investment management company, published its Q3 2024 “Baron Discovery Fund” investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund appreciated 13.55% (institutional shares), outperforming the 8.41% return of the Russell 2000 Growth index. So far this year, the fund has returned 9.50%, compared to 13.22% for the index. The firm was pleased with the fund’s performance in the third quarter and believes the bear market for small-cap growth stocks, which began in February 2021, may finally end. Plus, check out the fund’s top five holdings to learn your best picks in 2024.

Baron Discovery Fund highlighted stocks like Live Nation Entertainment, Inc. (NYSE:LYV) in the Q3 2024 investor letter. Live Nation Entertainment, Inc. (NYSE:LYV) is a live entertainment company headquartered in Beverly Hills, California. Live Nation Entertainment, Inc. (NYSE:LYV)’s monthly performance was 11.80% and its shares gained 46.26% of its value in the past 52 weeks. On November 6, 2024, Live Nation Entertainment, Inc. (NYSE:LYV) stock closed at $125.99 per share with a market capitalization of $29.244 million.

Baron Discovery Fund stated the following regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its Q3 2024 investor letter:

“We added to our position in Liberty Media Corporation – Liberty Live, a follower stock whose main asset is its stakes in Live Nation Entertainment, Inc. (NYSE:LYV). Live Nation, which produces live concerts and owns Ticketmaster, dropped when the Department of Justice (DOJ) sued the company for anti-competitive behavior. We expanded our position in Liberty Live because we do not believe the Department of Justice lawsuit will lead to the breakup of Live Nation and we believe Live Nation is trading at a valuation well below its intrinsic value. Shares of Live Nation and Liberty Live rallied during the quarter, ending the period near their 52-week highs.”

A group of people in a large music venue, enjoying a vibrant concert.

Live Nation Entertainment, Inc. (NYSE:LYV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. According to our database, Live Nation Entertainment, Inc. (NYSE:LYV) had 50 hedge fund portfolios at the end of the second quarter, up from 50 in the previous quarter. While we recognize the potential of Live Nation Entertainment, Inc. (NYSE:LYV) as an investment, our conviction lies in the belief that AI stocks hold more promise for generating higher returns and doing so in a shorter period of time. If you’re looking for an AI stock that’s as promising as NVIDIA but trades at less than 5x earnings, check out our report on cheapest AI stocks.

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