Billionaire Mason Hawkins’ 10 Mid-Cap Stocks with Huge Upside Potential

3. Live Nation Entertainment, Inc. (NYSE:LYV)

Market Capitalization: $31.00 billion

Number of Hedge Fund Holders: 60 

Southeastern Asset Management Stake: $1,824,137 

Analyst Upside Potential: 23.35%  

Live Nation Entertainment, Inc. (NYSE:LYV) is one of the largest live entertainment companies in the world. It operates through several business segments, including Concerts, Ticketing, and Sponsorships & Advertising. The company owns and operates numerous venues globally and invests in businesses related to live events.

The company recently released its Q1 2025 results, and the management is already citing 2025 to be a historic year for live music. The company recorded unprecedented growth in demand for live music concerts, driven by more artists touring around the world. The deferred revenue for Live Nation Entertainment, Inc. (NYSE:LYV) reached a record high of $5.4 billion for concerts and $270 million for Ticketmaster, representing a 24% and 13% increase, respectively.

The company has sold more than 95 million tickets for concerts so far in 2025, and stadium ticket sales are also up 80%. To meet this increasing demand, Live Nation Entertainment, Inc. (NYSE:LYV) is adding 20 major venues by 2026 with a capacity to accommodate 7 million more people. It is one of billionaire Mason Hawkins’ 10 mid-cap stocks with huge upside potential.

Baron Focused Growth Fund stated the following regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its Q4 2024 investor letter:

“In the fourth quarter, we initiated a new position in Live Nation Entertainment, Inc. (NYSE:LYV), the leader in the management and operation of live concerts at their owned and third-party venues. They are a leader in concert venue operations, tour promotions, event ticketing through Ticketmaster, and the selling of sponsorships and advertising on their website and owned venues. Live Nation’s dominant share in ticketing and unmatched scale in concert promotions are key competitive advantages for them and give them the ability to monetize tours through ticketing, sponsorships, and hig-margin food and beverage at their owned and operated venues. Concerts and live events are a secular growing business that we believe should grow at a high single-digit rate for the company as the industry grows and they take share. We believe the company has an opportunity to significantly increase pricing or add new supply given the continued consumer preference for experiences over goods and the scarce nature of these events. The company has an incredible brand, and benefits in both upcycles with strong demand, and downcycles through an increase in supply as touring is a significant part of artists’ incomes. Despite concerns about slower consumer spending growth from peak levels, the company continues to grow at a double-digit rate in revenue despite consumer worries and is now leaning in with increased marketing to grow internationally where it remains underpenetrated. The company is still generating strong cash flow with a robust balance sheet to fund venue renovations where it expects to generate 20% returns on capital. John Malone of Liberty Media still owns 30% of the business with the CEO owning a significant portion of his net worth in the stock. We believe valuation remains attractive at current levels given the double-digit growth we expect in both revenue and earnings over the coming years.”