Our top pick for
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Entertainment stocks can be a playful addition to any portfolio, representing the best of companies Americans use to tune in, tune out and otherwise amuse ourselves. They can be lucrative for investors, though vet your options as the continuing pandemic drags down consumer trends.
Entertainment stocks are from companies that fall within the entertainment industry — a subsector of the communication services sector as defined by the Global Industry Classification Standard.
These stocks belong to companies that keep the world entertained, spanning forms of at-home and on-the-go amusement across:
Film studios, broadcasting companies, event venues, cable and satellite companies, movie theaters and even bowling alleys and bounce houses all fall within the market’s entertainment sector.
Invest in the entertainment industry by purchasing stocks or exchange-traded funds (ETFs).
Individual stocks from companies in the entertainment sector offer the opportunity for a targeted investment — you can pick and choose which businesses you want to back. They can be profitable but volatile, with price fluctuations throughout the trading day.
ETFs offer a more diversified investment opportunity, because they track collections of stocks and offer exposure to a wider swath of companies. They come with greater stability than stocks, but also expense ratios that typically range from 0.03% to 2.5%.
Whether you opt for stocks, ETFs or a combination of the two, you’ll need a brokerage account to invest:
Major funds that track the entertainment sector include:
Despite the COVID-19 pandemic, many companies in the entertainment industry are thriving — especially streaming and video game platforms. The US happens to be home to one of the biggest, most prolific film industries in the world, generating a whopping $35.3 billion in revenue in 2019, according to Statista. In fact, movie ticket sales crossed the $1 billion mark in 2019 despite burgeoning competition from streaming services.
The movie industry isn’t the only subcategory of the entertainment sector with a strong performance history. Combined revenue from the global PC and mobile gaming markets for 2020 is estimated at nearly $114 billion, says Statista. Entertainment may be a consumer luxury — but it’s a profitable luxury.
Plus, entertainment stocks offer investors the opportunity to back companies they interact with every day — and there’s something to be said for investing in what you know
The coronavirus pandemic is having a debilitating effect on many sectors of the economy, with entertainment stocks no exception. While some companies and categories have found a profitable way to navigate the tenuous market conditions, appealing to the needs of consumers stuck at home, other companies are beginning to flounder — and even sink.
Many analysts are optimistic the economy will rebound — and with it, consumer spending habits. But there’s no guaranteed timeline for this recovery, and some companies in the entertainment industry may never bounce back.
It’s also hard to gauge the pandemic’s impact on how we prefer to be entertained. Movie theaters are crippled by the pandemic, leaving streaming services to fight tooth and nail for a slice of the market. It may be many years before we fully grasp the long-term effects of COVID-19 on the entertainment industry, or before movie theaters are packed once again.
To invest, you’ll need a brokerage account. Explore your options below.
The entertainment sector has performed well in the past and gives investors a chance to back companies most of us use every day. But time will tell how the coronavirus pandemic continues shaping the way we amuse ourselves.
Explore your brokerage account options to find the account best suited to meet your investment goals.
New investors, here’s what you need to know before you hit the trade button.
Continued losses throughout the week has given new investors an opportunity to buy the social media stocks at a discount. But think carefully about selling shares that are likely to rebound.
Comprehensive guide on blockchain stock investing, benefits, risks, main stocks, blockchain ETFs, and more.
Penny stocks are booming, and investors are seeing competitive returns. But analysts warn it’s only a matter of time before the bubble bursts.
SoftBank plans to raise millions through its newly launched SPAC. Learn more.
Private-equity companies have about $1.6 trillion of uninvested capital to put into merger and acquisition activity. This bodes well for 2021’s IPO market.
If you don’t need your money right now, consider investing in an HSA, blue chip stocks and more.
401(a) and 401(k) plans are retirement savings vehicles with tax benefits, but they have key differences.
What to consider before you back a pre-IPO placement.
Unlock the tax benefits of these retirement accounts and what to do if you maxed out.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.