In this article, we’ll look at 11 Best Entertainment Stocks to Buy According to Wall Street.
Entertainment stocks are back in the conversation as investors look beyond the narrow list of sectors that defined much of the past two years. With earnings growth becoming more concentrated and multiples under closer scrutiny, areas tied to digital engagement, streaming, gaming, and media platforms are being reassessed through a profitability and margin lens. Communication services, the sector that houses many entertainment names, has quietly delivered strong performance, and Wall Street is increasingly focusing on which companies can translate audience scale into durable earnings.
Fidelity notes that “Communication services stocks are tracking to be the best performing sector in 2025 thanks mostly to the AI trade, and the evolution of AI is expected to remain the most important driver for this sector in 2026.” The firm’s analyst adds that “Gaming is an example of an AI-related investment theme that I believe is particularly compelling,” pointing out that “AI is transforming the development and quality of these games, enhancing design and offering more personalized player experiences.”
BNY Investments echoes the profitability angle, writing that “communication services margins are now higher,” which it says reflects “a structural shift toward more efficient, high-margin business models driven by innovation, scale and automation.” When scale, automation, and AI converge inside content and distribution ecosystems, operating leverage tends to follow.
With asset managers leaning bullish on communication services and digital engagement themes, we’ll look at 11 Best Entertainment Stocks to Buy According to Wall Street.
Our Methodology
To identify the 11 Best Entertainment Stocks to Buy According to Wall Street, we used the Finviz screener to generate a list of entertainment stocks with a market capitalization of at least $2 billion. We then used the CNN analyst ratings compilation to determine the median upside for each stock as of February 16, 2026. We then ranked the 11 stocks according to their upside potential. We have also included the number of hedge funds that hold the stock as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Live Nation Entertainment, Inc. (NYSE:LYV)
Potential upside: 7.41%
Number of Hedge Fund Holders: 61
On February 12, 2026, Roth Capital lowered its price target on Live Nation Entertainment, Inc. (NYSE:LYV) to $174 from $176 and maintained a Buy rating. The firm said capital has been flowing into businesses viewed as resistant to AI disruption, such as live events, and noted that reduced concerns around a worst-case outcome in the DOJ antitrust lawsuit have helped renew investor interest. Roth added that sustained momentum will depend on management guiding to double-digit operating income growth in 2026.
On February 3, 2026, Live Nation announced an agreement to acquire ForumNet Group from Bastogi S.p.A., with the transaction expected to close in April 2026, subject to customary conditions. The deal centers on Unipol Forum, a major live music and sports arena that hosts approximately 2 million fans annually and has featured global and Italian artists, as well as serving as home to the Armani Olimpia Milano basketball team and a venue for figure and short track speed skating at the 2026 Winter Olympics. Live Nation said it plans to invest in upgrades to enhance the fan experience, improve artist and production facilities, and implement sustainability initiatives aimed at reducing carbon emissions. The transaction also includes Teatro Repower and the management of the open-air venue Carroponte.
Live Nation Entertainment, Inc. (NYSE:LYV) operates a global live entertainment business through its Concerts, Ticketing, and Sponsorship & Advertising segments.
10. Sphere Entertainment Co. (NYSE:SPHR)
Potential upside: 11.50%
Number of Hedge Fund Holders: 1
On February 13, 2026, Morgan Stanley raised its price target on Sphere Entertainment Co. (NYSE:SPHR) to $135 from $105 and maintained an Overweight rating, citing stronger-than-expected results from The Wizard of Oz. The firm said the performance lifts its estimates for the Las Vegas Sphere and increases its confidence in incorporating additional Sphere venues into its base case.
That same day, Goldman Sachs increased its price target to $126 from $108 and kept a Buy rating, saying its medium- to long-term thesis remains intact. The firm pointed to sustained demand for live entertainment, growing interest in additional Las Vegas Sphere venues, and expanding content and advertising partnerships. Goldman identified key catalysts for 2026 and beyond, including the performance of The Wizard of Oz, new residencies, multiyear sponsorships, and future franchise or intellectual property launches. Also on February 13, BTIG raised its price target to $127 from $110 and maintained a Buy rating, calling the quarter excellent as The Wizard of Oz exceeded pricing assumptions and supported higher financial contribution expectations.
Sphere reported fourth-quarter revenue of $394.28 million on February 12, 2026, above the $377.6 million consensus estimate. Executive Chairman and CEO James Dolan said the results validate the business model and highlighted plans to expand the global footprint, including projects in Abu Dhabi and National Harbor.
Sphere Entertainment Co. (NYSE:SPHR) operates as a live entertainment and media company through its Sphere and MSG Networks segments.
9. TKO Group Holdings, Inc. (NYSE:TKO)
Potential upside: 12.70%
Number of Hedge Fund Holders: 42
On February 12, 2026, Roth Capital raised its price target on TKO Group Holdings, Inc. (NYSE:TKO) to $240 from $210 and maintained a Buy rating. The firm said it remains constructive on TKO’s long-term growth outlook and noted that while the company has completed negotiations for its three major TV license contracts, additional levers could drive incremental upside to estimates in the coming years, along with expanded capital return opportunities.
Also on February 12, UFC announced a strategic partnership with FoodStory Brands to develop and launch a nutritionist-backed protein bar targeting the performance nutrition market. The partnership was brokered by UFC’s licensing agent, IMG Licensing.
Earlier, on January 21, 2026, JPMorgan analyst David Karnovsky raised his price target on TKO Group Holdings, Inc. (NYSE:TKO) to $225 from $220 previously and maintained an Overweight rating, updating the model ahead of the fourth-quarter report. The firm said it continues to see potential for long-term compounded free cash flow growth.
TKO Group Holdings, Inc. (NYSE:TKO) operates a sports and entertainment business that owns and manages intellectual property, produces and licenses live events and programming, distributes content across digital and linear channels, offers the UFC FIGHT PASS streaming service, and markets related consumer products.
8. Sirius XM Holdings Inc. (NASDAQ:SIRI)
Potential upside: 12.73%
Number of Hedge Fund Holders: 54
On February 6, 2026, Seaport Research downgraded Sirius XM Holdings Inc. (NASDAQ:SIRI) to Neutral from Buy and removed its price target. The firm said new revenue and EBITDA guidance appears stable relative to 2025, which compares favorably to prior years of negative growth outlooks and helped drive a relief rally. However, Seaport lowered its estimates based on expectations for moderately worse self-pay net losses in 2026 versus 2025, slower ARPU growth, and the redeployment of much of last year’s cost savings into new initiatives.
Also on February 6, Sirius XM informed subscribers that effective February 24, the standard rate for the Sirius Marine Voyager subscription with Music and Entertainment audio will increase by $1.00 per month, while the Platinum audio tier will rise by $1.01 per month.
Sirius XM reported fourth-quarter revenue of $2.19 billion on February 5, 2026, above the $2.17 billion consensus estimate. CEO Jennifer Witz said the company entered 2025 with renewed strategic focus as a fully independent public company and finished the year with a strong fourth quarter, meaningful free cash flow growth, and results that exceeded full-year guidance. She added that 2026 guidance reflects stabilization of the business, with emphasis on unique programming, automotive leadership, and audio advertising capabilities.
Sirius XM Holdings Inc. (NASDAQ:SIRI) operates an audio entertainment business across its Sirius XM and Pandora and Off-platform segments, offering subscription-based music, sports, news, and talk programming through satellite and streaming platforms.
7. Madison Square Garden Sports Corp. (NYSE:MSGS)
Potential upside: 15.62%
Number of Hedge Fund Holders: 46
On February 13, 2026, Citi analyst Jason Bazinet raised his price target on Madison Square Garden Sports Corp. (NYSE:MSGS) to $337 from $290 and maintained a Buy rating. The firm said the company remains open to a potential minority stake sale, which could narrow the valuation gap relative to private market benchmarks. Citi also rolled forward its valuation framework to fiscal 2027.
On February 6, 2026, Morgan Stanley analyst Benjamin Swinburne increased his price target on Madison Square Garden Sports Corp. (NYSE:MSGS) to $295 from $220 and kept an Equal Weight rating, noting that fiscal Q2 results were in line and that per-game spending at Madison Square Garden remained strong. The firm described the risk/reward as balanced following a more than 35% rally in the shares over the past six months. That same day, JPMorgan analyst David Karnovsky raised his price target on Madison Square Garden Sports Corp. (NYSE:MSGS) to $305 from $240 and maintained an Overweight rating, saying the stock’s risk/reward appears attractive after the fiscal Q2 report.
Madison Square Garden Sports reported second-quarter revenue of $403.42 million on February 5, 2026, above the $394.57 million consensus estimate. Executive Chairman and CEO James Dolan said the results reflect positive momentum across all in-game revenue categories and pointed to strong consumer and corporate demand as supporting long-term value creation.
Madison Square Garden Sports Corp. (NYSE:MSGS) operates as a professional sports company and owns the New York Knicks of the NBA and the New York Rangers of the NHL.
6. Warner Music Group Corp. (NASDAQ:WMG)
Potential upside: 25.64%
Number of Hedge Fund Holders: 32
On February 5, 2026, Warner Music Group Corp. (NASDAQ:WMG) reported first-quarter revenue of $1.84 billion, above the $1.77 billion consensus estimate. CEO Robert Kyncl said 2026 is “off to a strong start,” citing continued creative momentum, market share gains, and financial performance. He pointed to an upcoming slate of new releases and said the company is advancing its use of AI to enhance value creation for artists, songwriters, and shareholders.
Earlier, on January 27, 2026, MoffettNathanson analyst Clay Griffin initiated coverage on Warner Music Group Corp. (NASDAQ:WMG) with a Buy rating and a $38 price target. The firm said that after fifteen years of music streaming expansion, developed markets are nearing saturation and subscriber growth is “drawing to a close,” with the next phase expected to center on pricing. The analyst added that there remains room for pricing growth.
On January 21, 2026, Citi lowered its price target on Warner Music Group Corp. (NASDAQ:WMG) to $40 from $41 previously but still maintained a Buy rating on the company.
Warner Music Group Corp. (NASDAQ:WMG) operates as a global music entertainment company through its Recorded Music and Music Publishing segments, focusing on artist development, marketing, distribution, and licensing of music content.
5. The Walt Disney Company (NYSE:DIS)
Potential upside: 28.02%
Number of Hedge Fund Holders: 107
On February 13, 2026, California Attorney General Rob Bonta announced a $2.75 million settlement with The Walt Disney Company (NYSE:DIS) over allegations that it violated the California Consumer Privacy Act by failing to fully honor consumers’ requests to opt out of the sale or sharing of their data across devices and streaming services tied to Disney accounts. Under the settlement, Disney must pay civil penalties and implement opt-out mechanisms that completely stop the sale or sharing of consumers’ personal information. Bonta said the agreement represents the largest settlement to date under the CCPA and emphasized that businesses cannot require consumers to opt out on a device-by-device or service-by-service basis.
Earlier, on February 3, 2026, Disney announced that its board unanimously elected Disney Experiences chairman Josh D’Amaro to succeed Robert Iger as CEO, effective March 18 at the company’s annual meeting. The board also intends to appoint D’Amaro as a director following the meeting. Dana Walden, co-chairman of Disney Entertainment, was named president and chief creative officer, also effective March 18. Iger will remain a senior advisor and board member until his retirement on December 31.
Also on February 3, Rosenblatt analyst Barton Crockett lowered his price target on Disney to $130 from $139 and maintained a Buy rating, saying fiscal Q1 earnings topped consensus but describing management commentary as “uninspiring.” He noted that while Disney retained guidance for double-digit EPS growth, growth is expected to stall across segments in Q2, with results weighted toward the back half of the year.
The same day, Morgan Stanley analyst Thomas Yeh resumed coverage with an Overweight rating and a $135 price target, citing what he sees as a compelling risk/reward profile. The firm expects double-digit adjusted earnings growth in fiscal 2026 and beyond and described core streaming and parks trends as healthy, with potential acceleration in the second half.
The Walt Disney Company (NYSE:DIS) operates as a global entertainment company through its Entertainment, Sports, and Experiences segments.
4. Fox Corporation (NASDAQ:FOX)
Potential upside: 33.10%
Number of Hedge Fund Holders: 43
On February 5, 2026, Evercore ISI raised its price target on Fox Corporation (NASDAQ:FOX) to $70 from $66 previously and maintained an In Line rating following what it described as a “strong” quarterly report and “bullish” forward commentary. That same day, Morgan Stanley increased its price target on Fox Corporation (NASDAQ:FOX) to $77 from $74 previously and kept an Equal Weight rating, lifting estimates after “strong” fiscal Q2 results that it said were once again driven by meaningful advertising outperformance. The firm added that in a difficult pay-TV environment, Fox continues to demonstrate relative strength versus peers, supported by its focus on live news and sports.
Fox Corporation (NASDAQ:FOX) reported second-quarter revenue of $5.18 billion on February 4, 2026, ahead of the $5.03 billion consensus estimate. CEO Lachlan Murdoch said the company delivered “robust results” with broad-based contributions across the portfolio, highlighting advertising strength even against a tough political comparison from the prior year. He said the quarter reflects continued operating and financial momentum tied to the company’s strategy and execution across news, sports, streaming, and entertainment.
Fox Corporation (NASDAQ:FOX) operates as a news, sports, and entertainment company in the United States across its Cable Network Programming, Television, Credible, and The FOX Studio Lot segments.
3. Paramount Skydance Corporation (NASDAQ:PSKY)
Potential upside: 35.66%
Number of Hedge Fund Holders: 37
On February 12, 2026, Reuters reported that Paramount Skydance Corporation (NASDAQ:PSKY) is in talks with Matthew Halbower, founder of Pentwater Capital Management and the seventh-largest investor in Warner Bros. Discovery, about potentially running for a seat on Warner’s board. The move is aimed at opposing Warner’s proposed tie-up with Netflix. Halbower told Reuters he would consider becoming a director candidate later this year if Paramount pursues a board fight. “I want the board of Warner Bros to exercise their fiduciary duties and negotiate with Paramount,” he said, adding that if the board fulfills those responsibilities, there would be no need for him to join.
On February 10, 2026, Paramount Skydance announced it amended its $30 per share, all-cash tender offer to acquire Warner Bros. Discovery, describing the revised proposal as offering superior value and certainty. The enhanced terms include an additional $0.25 per share in cash for every quarter the transaction is not completed beyond December 31, 2026, funding of the $2.8 billion termination fee tied to the Netflix agreement, and a full backstop of Warner’s debt exchange offer to eliminate a potential $1.5 billion financing cost. Paramount also said it would reimburse shareholders for that $1.5 billion fee if the exchange fails and the transaction does not close, without reducing the separate $5.8 billion reverse termination fee. The company added that its financing package includes an irrevocable personal guarantee from Larry Ellison of $43.3 billion to cover equity financing and potential damages claims. Chairman and CEO David Ellison said the revised offer underscores Paramount’s commitment to delivering full value to WBD shareholders with certainty around financing and regulatory execution.
Paramount Skydance Corporation (NASDAQ:PSKY) operates as a global media and entertainment company across its Studios, Direct-to-Consumer, and TV Media segments.
2. Roku, Inc. (NASDAQ:ROKU)
Potential upside: 44.35%
Number of Hedge Fund Holders: 56
On February 16, 2026, Pivotal Research raised its price target on Roku, Inc. (NASDAQ:ROKU) to $140 from $135 and maintained a Buy rating, describing the company’s fourth-quarter report as strong and better than expected. The firm also highlighted Roku’s “Switzerland-like positioning” within the streaming ecosystem.
On February 13, 2026, Oppenheimer increased its price target to $120 from $105 and kept an Outperform rating following quarterly results. The firm noted that Roku is guiding fiscal 2026 Platform revenue 2% to 4% above its prior estimates and Street expectations, and said third-party partnerships are expected to ramp through fiscal 2026, with Amazon not yet meaningful to revenue but representing a potential fiscal 2027 tailwind. That same day, UBS raised its price target to $110 from $103 and maintained a Neutral rating, citing solid results and initial 2026 guidance that came in ahead of Street estimates.
Roku, Inc. (NASDAQ:ROKU) reported fourth-quarter revenue of $1.39 billion on February 12, 2026, above the $1.35 billion consensus estimate. For fiscal 2025, total net revenue reached $4.737 billion, up 15% year over year, while Platform revenue rose 18% to $4.145 billion. Gross profit increased 15% to $2.074 billion, and streaming hours grew 15% to 145.6 billion. The company said it delivered positive net income, expanded Adjusted EBITDA margin by 255 basis points, and generated record trailing twelve-month free cash flow. Roku repurchased $150 million of shares under its $400 million buyback program and said it expects to sustain double-digit Platform revenue growth in 2026 while continuing to expand operating and net income margins.
Roku, Inc. (NASDAQ:ROKU) operates a TV streaming platform through its Platform and Devices segments in the United States and internationally.
1. News Corporation (NASDAQ:NWS)
Potential upside: 58.45%
Number of Hedge Fund Holders: 55
On February 6, 2026, Morgan Stanley lowered its price target on News Corporation (NASDAQ:NWS) to $32.40 from $38 previously and maintained an Overweight rating, updating estimates after first-half fiscal 2026 results. Morgan Stanley has noted that there is no change to its “fundamental positive thesis.”
Citi also lowered its price target on News Corporation (NASDAQ:NWS) to $39 from $40 previously and kept a Buy rating on the shares.
News Corporation (NASDAQ:NWS) reported second-quarter revenue of $2.36 billion on February 5, 2026, above the $2.3 billion consensus estimate. CEO Robert Thomson said the company delivered “excellent second quarter results,” with revenue up 6% and profitability rising 9% year over year. He pointed to sustained growth at Dow Jones and Digital Real Estate Services, both of which achieved double-digit profit growth, along with record digital advertising revenue and Segment EBITDA margins nearing 30%. Thomson also highlighted the company’s expanded partnership with Bloomberg to include AI rights for Dow Jones content and said the company continued executing on its buyback program at a pace more than four times the prior rate.
News Corporation (NASDAQ:NWS) is a media and information services company operating across Digital Real Estate Services, Dow Jones, Book Publishing, News Media, and Other segments.
While we acknowledge the potential of NWS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NWS and that has 100x upside potential, check out our report about this cheapest AI stock.
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