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U.S. Entertainment Industry Analysis

UpdatedApr 02, 2026
DataAggregated Company Financials
Companies155
  • 7D1.8%
  • 3M-8.9%
  • 1Y4.2%
  • YTD-7.5%

Over the last 7 days, the Entertainment industry has risen 1.8%, driven by gains from Netflix of 3.5%. During this same period, the Tencent Music Entertainment Group underperformed, falling 5.5%. This takes the industry's 12 month performance to a gain of 4.2%. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

Has the U.S. Entertainment Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Apr 2026US$1.0tUS$287.7bUS$22.9b36.7x45.1x3.6x
Sat, 28 Feb 2026US$1.0tUS$288.8bUS$22.8b37x45.6x3.6x
Mon, 26 Jan 2026US$1.1tUS$283.4bUS$21.8b21.1x49x3.8x
Wed, 24 Dec 2025US$1.2tUS$281.4bUS$21.3b20.8x54.6x4.1x
Fri, 21 Nov 2025US$1.2tUS$278.8bUS$22.7b19.5x51.8x4.2x
Sun, 19 Oct 2025US$1.3tUS$274.7bUS$21.8b24.7x58.3x4.6x
Tue, 16 Sep 2025US$1.3tUS$274.8bUS$21.8b39.8x59.1x4.7x
Thu, 14 Aug 2025US$1.4tUS$295.3bUS$22.9b32.1x59.5x4.6x
Sat, 12 Jul 2025US$1.4tUS$288.7bUS$7.3b29x185.5x4.7x
Mon, 09 Jun 2025US$1.3tUS$288.3bUS$7.4b22.3x176.6x4.6x
Wed, 07 May 2025US$1.2tUS$285.1bUS$3.3b22.4x358.3x4.1x
Fri, 04 Apr 2025US$1.1tUS$282.7bUS$2.5b24.8x416.9x3.8x
Sun, 02 Mar 2025US$1.1tUS$287.3bUS$2.0b21.2x552.8x3.9x
Tue, 28 Jan 2025US$1.1tUS$286.1bUS$953.1m19.9x1141.7x3.8x
Thu, 26 Dec 2024US$1.1tUS$284.5bUS$16.3m18.7x64919.9x3.7x
Sat, 23 Nov 2024US$1.0tUS$284.7bUS$61.3m22.8x17021.6x3.7x
Mon, 21 Oct 2024US$957.8bUS$300.0bUS$1.7b23.9x560x3.2x
Wed, 18 Sep 2024US$888.0bUS$299.2bUS$1.0b19.1x851.9x3x
Fri, 16 Aug 2024US$855.3bUS$298.8bUS$1.1b22.3x761.2x2.9x
Sun, 14 Jul 2024US$852.4bUS$291.4bUS$7.7b14.3x111.1x2.9x
Tue, 11 Jun 2024US$854.5bUS$291.3bUS$7.8b14.8x109.8x2.9x
Thu, 09 May 2024US$836.2bUS$290.6bUS$9.8b20x85.3x2.9x
Sat, 06 Apr 2024US$848.3bUS$288.0bUS$9.3b19.2x91.4x2.9x
Mon, 04 Mar 2024US$839.0bUS$286.7bUS$9.9b15.3x84.5x2.9x
Wed, 31 Jan 2024US$890.5bUS$296.9bUS$8.0b20x111.8x3x
Fri, 29 Dec 2023US$835.1bUS$297.2bUS$7.1b19.7x118.3x2.8x
Sun, 26 Nov 2023US$846.1bUS$297.0bUS$6.9b20.9x123.1x2.8x
Tue, 24 Oct 2023US$741.4bUS$288.0bUS$1.5b20.9x509.2x2.6x
Thu, 21 Sep 2023US$736.5bUS$286.4bUS$868.6m20.7x848x2.6x
Sat, 19 Aug 2023US$738.6bUS$287.7b-US$13,837,973.0026.2x-53371.4x2.6x
Mon, 17 Jul 2023US$797.3bUS$280.4b-US$2,323,755,633.0021.5x-343.1x2.8x
Wed, 14 Jun 2023US$784.0bUS$279.7b-US$2,200,888,954.0019.6x-356.2x2.8x
Fri, 12 May 2023US$731.2bUS$280.7b-US$2,797,349,377.0020.9x-261.4x2.6x
Sun, 09 Apr 2023US$758.3bUS$266.9b-US$1,082,181,764.0022.4x-700.7x2.8x
Price to Earnings Ratio

-700.7x


Total Market Cap: US$758.3bTotal Earnings: -US$1,082,181,764.00Total Revenue: US$266.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Entertainment Industry Price to Earnings3Y Average -68158.7x202420252026
Current Industry PE
  • Investors are optimistic on the American Entertainment industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 45.1x which is higher than its 3-year average PE of -68kx.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • Total earnings for the Entertainment industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 2.5% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Telecom industry?

US Market-0.32%
Telecom0.41%
Entertainment1.82%
Movies and Entertainment1.86%
Interactive Home Entertainment1.53%
Industry PE
  • Investors are most optimistic about the Movies and Entertainment industry even though it's trading below its 3-year average PE ratio of 59.6x.
    • Analysts are expecting annual earnings growth of 15.8%, which is lower than the prior year's growth of 29.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 39% over the next 5 years.
  • This is better than its past earnings decline of 10% per year.
  • In contrast, the Movies and Entertainment industry is expected to see its earnings grow by 16% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
NFLX NetflixUS$95.553.5%
+US$13.8b		2.1%PE36.7x
DIS Walt DisneyUS$96.560.6%
+US$1.1b		-1.3%PE14x
WMG Warner Music GroupUS$25.767.8%
+US$976.8m		-17.3%PE44.6x
TTWO Take-Two Interactive SoftwareUS$198.202.7%
+US$953.7m		-6.1%PS5.6x
RBLX RobloxUS$57.631.7%
+US$694.5m		-6.5%PS8.4x

Latest News

WBD
US$27.49
Warner Bros. Discovery
7D
1.0%
1Y
160.3%
WMG
US$25.76
Warner Music Group
7D
7.8%
1Y
-17.3%

WMG: AI Catalog Risks Will Ultimately Support Long Term Content Economics

Analysts have nudged their price targets for Warner Music Group lower by a few dollars, citing updated assumptions that combine slightly higher growth expectations with pressure on profit margins and fresh concerns around AI related catalog and market share risks. Analyst Commentary Recent research highlights a mix of optimism about Warner Music Group's growth potential and concern around how new technologies, especially AI, could affect long term value and market share.
DIS
US$96.56
Walt Disney
7D
0.6%
1Y
-1.3%

End of OpenAI deal not a massive loss

In my last narrative, I pointed to the deal Disney struck with OpenAI as an example of its leadership in merging the entertainment and AI worlds. This deal has now ended.
NFLX
US$95.55
Netflix
7D
3.5%
1Y
2.1%

NFLX: Higher Pricing And Advertising Will Support Engagement After Warner Bid Exit

Netflix's analyst price targets have recently shifted as analysts factor in updated views on subscriber monetization, 2026 revenue assumptions, and a reset in expected P/E multiples following the decision to walk away from the Warner Bros. Discovery bid, while also incorporating the impact of price increases and advertising trends.
SPOT
US$470.01
Spotify Technology
7D
-0.7%
1Y
-16.9%

SPOT: Recurring Price Increases Will Support Future Margin Expansion Potential

Analysts have nudged their price target framework for Spotify higher to $784.59 from $767.84, reflecting slightly firmer assumptions around revenue growth, profit margins, and future P/E in light of a mix of supportive rating actions, incremental price hike expectations, and ongoing debate over AI related risks. Analyst Commentary Recent research on Spotify centers on two themes you should keep in mind: pricing power in Premium subscriptions and how much AI changes the risk profile for the business.
FWON.K
US$85.36
Formula One Group
7D
2.5%
1Y
-5.2%

FWON.K: Third Party Race Promotion And 2026 Deals Will Drive Upside Potential

Analysts have trimmed their average price target for Formula One Group by $0.44 to reflect a slightly higher discount rate and slower revenue growth assumptions, partly offset by expectations for stronger profit margins and a lower future P/E multiple informed by recent mixed target moves and rating changes across the Street. Analyst Commentary Recent Street research around Formula One Group shows a mix of optimism and restraint, with several firms fine-tuning price targets and ratings rather than making sweeping calls.
TTWO
US$198.20
Take-Two Interactive Software
7D
2.7%
1Y
-6.1%

TTWO: GenAI Returns And GTA Guidance Will Drive Repricing Potential

Analysts have modestly reduced their average price target on Take-Two Interactive Software to about $295, reflecting updated views on Grand Theft Auto unit economics, GTA Online potential, and upcoming guidance that is expected to include the planned GTA 6 release window. Analyst Commentary Bullish analysts are generally framing the updated US$295 average price target within a wider pattern of positive sentiment on Take-Two, even as some models are recalibrated around Grand Theft Auto unit economics and GTA Online assumptions.
LYV
US$152.63
Live Nation Entertainment
7D
-1.5%
1Y
13.4%

LYV: DOJ Settlement Progress Will Support Venue Expansion Upside Potential

Live Nation Entertainment's analyst-derived fair value estimate edges up from $182.59 to $183.27 as analysts factor in higher Street price targets clustered around $177 to $204. These are largely tied to relief around a potential DOJ settlement, expectations for continued concert and sponsorship strength, and a greater focus on owned-and-operated venues, while Ticketmaster related changes are viewed as manageable.
RBLX
US$57.63
Roblox
7D
1.7%
1Y
-6.5%
ROKU
US$94.90
Roku
7D
-0.2%
1Y
32.9%
TME
US$9.19
Tencent Music Entertainment Group
7D
-5.5%
1Y
-36.5%

TME: Core Paying Users And K Content Will Support Future Recovery

Analysts have trimmed their price targets on Tencent Music Entertainment Group, with the updated fair value estimate moving from about $30.90 to $29.33 as they factor in reduced revenue growth assumptions, a higher discount rate, and sector wide target cuts and downgrades that highlight competitive pressures and softer near term visibility. Analyst Commentary Recent research on Tencent Music Entertainment Group reflects a cautious tone overall, with several firms trimming price targets or moving to more neutral ratings as they reassess competitive risks and shorter term earnings visibility.
PLTK
US$2.74
Playtika Holding
7D
-5.2%
1Y
-48.2%

PLTK: Future Returns Will Rely On Margin Expansion And Free Cash Flow Recovery

Analyst price targets for Playtika Holding have moved lower in recent weeks, with several firms cutting targets into a $3 to $5.50 range as analysts factor in constrained free cash flow from SuperPlay earnouts, alongside stable revenue trends and improving margins. Analyst Commentary Bullish Takeaways Bullish analysts highlight that margin expansion linked to the SuperPlay acquisition and higher direct to consumer contributions supports the current earnings profile, even as revenue trends are described as stable rather than growth driven.
STUB
US$6.10
StubHub Holdings
7D
-11.2%
1Y
n/a
ANGX
US$3.00
Angel Studios
7D
-9.4%
1Y
-73.8%
TKO
US$201.07
TKO Group Holdings
7D
3.7%
1Y
26.8%
NIPG
US$0.69
NIP Group
7D
-12.1%
1Y
-64.8%