Live Nation Stock Rallies Following Senate Stimulus Vote
Live Nation Entertainment (LYV) saw a strong resurgence in its stock Thursday after the U.S. Senate unanimously voted in favor of a $2 trillion stimulus package to rejuvenate the ailing economy.
Live Nation stock bounced back up to close at $45.94 Thursday, a sizable increase from the dismal $21.70 price it sank to earlier this month. The surge can be credited to a number of factors. Investors saw the Dow Jones Industrial Average achieve a single-day record 11 percent upward swing this week while China prepares to lift its months-long lockdown of the origin site of COVID-19. Numbers continued to rise following the Senate’s historic vote to pass an emergency stimulus package.
The entire Senate floor voted in favor of the $2 trillion plan, which would overhaul the economy and provide relief to both businesses and citizens. Among its top features are $100 billion in federal funding for hospitals and the healthcare industry, $500 billion in forgivable loans to struggling businesses, and sending checks for $1,200 to citizens earning under $75,000 annually.
The entertainment leader has been put through the ringer as the COVID-19 outbreak simultaneously sent the stock market and live event industry into a downward spiral this month. Its financial woes led to being reviewed for a potential downgrade from the S&P Global Ratings, which claimed LYV could face some long-term effects with the live event industry abruptly halted.
However, investors have kept an interest in Live Nation stock and other companies that have been among the most impacted by the pandemic. Mark Cuban admitted to buying some shares of Live Nation, while Warren Buffett’s Berkshire Hathaway invested over $43 million in Delta Airlines at the start of the month as the travel industry began to dwindle.
Live Nation stock is still facing an uphill climb to get back to its 52-week high of $76.08, which was achieved only weeks ago.