4. The Liberty SiriusXM Group (NASDAQ:LSXMA)
Number of Hedge Fund Holders: 46
The Liberty SiriusXM Group (NASDAQ:LSXMA) is one of the best broadcasting stocks to invest in. The company operates in the entertainment industry in the United States and Canada. The Liberty SiriusXM Group (NASDAQ:LSXMA) offers a range of services including music, sports, entertainment, comedy, talk, news, traffic, weather channels, podcasts, and infotainment. These services are delivered through their own satellite radio systems and can also be streamed through mobile and home device applications, as well as other consumer electronic equipment. It is one of the best broadcasting stocks to invest in.
On April 23, Seaport Research analyst David Joyce started coverage of The Liberty SiriusXM Group (NASDAQ:LSXMA) with a Neutral rating. The firm has initiated coverage on ten companies in the Live Sports & Entertainment segment, generally holding a positive view. This is due to the demonstrated operational resilience of these companies during economic downturns, the long-term value of professional sports teams, and the potential for certain companies to experience significant growth once catalysts are realized, even though this may take some time, the analyst wrote in a research note.
According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on The Liberty SiriusXM Group (NASDAQ:LSXMA), compared to 52 funds in the prior quarter.
Sequoia Fund made the following comment about The Liberty SiriusXM Group (NASDAQ:LSXMA) in its Q4 2022 investor letter:
“Shares of The Liberty SiriusXM Group (NASDAQ:LSXMA), the holding company through which we own the Formula One motorsport league, declined this year, though by significantly less than the S&P 500 Index. Business performance was superb. For full-year 2022, Liberty Media’s revenues are expected to be up almost 20%, with profits up even more. This robust growth is the result of a continued recovery from pandemic-related disruptions, but even after adjusting for this recovery the business grew nicely. Versus 2019, Liberty Media’s revenues and per share earnings power are expected to have compounded at annual rates of approximately 7% and 23%, respectively.
Formula One has made very significant progress since Sequoia first acquired shares via a private placement in 2017. Formula One has for decades been the pinnacle of global motorsport, but under previous management it suffered from internecine fissures and short-sighted strategy that were negatively impacting the sport and the business. 2022 saw the full implementation of a new Concorde Agreement signed in 2020. The Concorde Agreement lays out the key economic, technical and sporting terms on which the teams participate, and this most recent one realigns the teams and the league in a manner that should pay off for all parties involved. The new Concorde Agreement has already had some positive impact on the sport and the business, and we believe the majority of the benefits have yet to be realized.
Already, the sport is healthier than it has been for a long time. TV viewership was up globally again this year, which helped Formula One secure a round of richer broadcast deals in Europe as well as in the US, where the new deal with ESPN/ABC is rumored to be almost 10x more remunerative than the last one. In 2022, US TV viewership was up almost 30% over last year, building on the momentum of previous years and driven by the latest season of Netflix’s Drive to Survive series and the calendar’s new Miami race. Liberty Media plans to add a third US race in 2023, in Las Vegas. Instead of relying on a promoter as it typically does, Liberty Media will run the Las Vegas race itself, which will require significant investment but should generate an attractive return…” (Please click here to read the full text)
