Live Nation and other live music companies stocks catapulted yesterday morning after news of the COVID-19 vaccine development. With a 90% success rate, it looks like the anticipation to return to normalcy is beginning.
Firstly, the risk of the vaccine’s effectiveness is something that battered companies are relying on. Secondly, an era where Netflix-and-chilling along with working from home could come to an end. Pfizer released a statement regarding its vaccine trial results and immediately, stocks rose.
Here is the list for some companies:
- Live Nation – +20.8% ($67.73)
- Madison Square Garden Entertainment – +21.44% ($84.44)
- CTS Eventim – +23.5% ($51.90)
- Dow – +3.9%
- S&P – +2.9%
- FTSE 100 – +5.8%
- RTS Index – +5.3%
Biotech companies Pfizer and BioNTech developed the vaccine with no serious side effects. 43,538 participants of racially and ethnically diverse backgrounds took trials. The drug sees a 90% effectiveness rate 28 days after the first dose. Of course, as the trials continue, the efficacy percentage can vary.
Good news? Well, the vaccine will be made in limited quantities. So, fans can expect live events to operate at 100% around summer 2021. Pfizer is currently working on producing 50 million – 1.3 billion doses by the end of the year. From there, the US government ordered 100 million doses, plus an additional 500 million.
Ticketing refund rates held at 37%, with Live Nation’s global refund rate at 17%. At first, it appalled attendees to be in the negative alongside the live event company. However, it looks like there is a silver lining. Perhaps it is time to start looking into investments? This may be a good way to financially recover from this year.
Travel and tourism companies like American Airlines and Hilton Worldwide saw a bump in share prices as well. Movie theater chains like AMC skyrocketed in price. Retailers like Target, Best Buy, Costco, and other big chains saw a surge too.
We’re slowly getting back to business and there is hope yet. This year has been quite a learning experience. Whether things got creative or suffered, I’d like to think there is strength through adversity.