Entertainment is one of the most enduring human pursuits. It’s thrived across millennia continually reshaping itself amidst shifts in culture and technology. This adaptability combined with growing consumer demand has turned it into a multi-trillion-dollar global industry, where traditional forms like theatre coexist with modern phenomena like streaming services and video games.
Investors have a great opportunity to profit from this sector’s sustained growth and evolution. Below, we highlight some standout entertainment stocks that are capturing the market’s attention and that may be worth considering for your portfolio.
This sector constantly shifts and finding the best entertainment stocks can feel like trying to shoot arrows at moving targets, on horseback, while filming a blockbuster Western film. To give you some starting inspiration for action, we’re shining some lights and cameras on these top entertainment stocks from the MSCI World Media and Entertainment Index:
| Icon | Stock | 1 year performance (February 2024) | 5 year performance (February 2024) | Link to invest |
|---|---|---|---|---|
 | Meta Platforms (META) | 155.29% | 183.86% | Invest with XTBCapital at risk |
 | Netflix (NFLX) | 56.20% | 62.45% | Invest with XTBCapital at risk |
 | Alphabet A (GOOGL) | 55.93% | 163.54% | Invest with XTBCapital at risk |
 | Nintendo (7974) | 49.71% | 187.40% | Invest with XTBCapital at risk |
| Alphabet C (GOOG) | 38.73% | 162.17% | Invest with XTBCapital at risk |
 | Trade Desk (TTD) | 33.74% | 378.80% | Invest with XTBCapital at risk |
 | Electronic Arts (EA) | 21.79% | 40.00% | Invest with XTBCapital at risk |
 | Comcast (CMCSA) | 14.12% | 19.92% | Invest with XTBCapital at risk |
 | Walt Disney (DIS) | -11.60% | -12.90% | Invest with XTBCapital at risk |
 | Charter Communications (CHTR) | -21.10% | -7.25% | Invest with XTBCapital at risk |
As the name suggests, entertainment stocks are shares of businesses that operate within the entertainment industry. These are companies that specialise in delivering various forms of enjoyment, amusement and leisure to consumers.
The entertainment industry is very diverse, and investors have plenty of options to choose from. Here are some of the main choices:
Investors are drawn to the entertainment sector for various reasons, including the glitz and glamour of its substantial growth prospects. Global spending on entertainment is expected to hit $2.78 trillion by 2027, up from $2.32 trillion in 2022.
The emotional connection people have with entertainment brands is also often a strong motivator. Investing in companies that produce beloved content or memorable experiences gives investors a chance to kill two birds with one stone – become part of the brand’s story and evolution while potentially enjoying financial gains.
Here are some of the best blockbuster benefits that may get you hyped up about the prospect of investing in entertainment stocks:
Away from all the bright lights and excitement, there are still potential drawbacks to consider if you’re thinking about investing in entertainment stocks:
There’s plenty of positive tailwinds across this sector. The popularity of streaming services along with the continued expansion of the video game industry is opening up even more doors for investment opportunities.
However, entertainment stocks seem to get heavily punished for the slightest drop in growth, and most businesses can’t keep growing forever. There are also some areas within entertainment, like amusement parks for example, that aren’t as successful as they once were. I think there’s plenty of opportunity among entertainment stocks but it’s a cut-throat and ruthless business sector.
Other than investing in individual stocks of companies in the entertainment sector, there are other alternative ways of gaining exposure to this industry. Here are some of your options:
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
The entertainment industry is a dynamic and potentially lucrative sector for investment. It’s worth a look for investors seeking good wealth-building options. However, as with any other investment, thorough research, a clear understanding of your risk tolerance, and a long-term perspective are important. Plenty of the best entertainment stocks may look shiny on the surface, but always dig deeper and think about the future prospects.
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