SPHR

Sphere Entertainment Co - Ordinary Shares - Class A

Consumer, TMT


Presented:04/04/2024
Price:$46.63
Cap:$1.64B
Current Price:$48.91
Cap:$1.73B

Presented

Date04/04/2024
Price$46.63
Market Cap$1.64B
Ent Value$2.11B
P/E Ratio4.41x
Book Value$70.17
Div Yield0%
Shares O/S35.14M
Ave Daily Vol719,734
Short Int27.51%

Current

Price$48.91
Market Cap$1.73B
Sphere Entertainment Co. engages in the provision of live entertainment and media services. It operates through the following segments: Entertainment, MSG Networks, and Other. The Entertainment segment is involved in the bookings business, which features a variety of live entertainment and sports experiences. The MSG Networks segment delivers a range of live sports content, entertainment networks, and other programming. The company was founded in 2010 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Sphere Entertainment Co (SPHR) 

Highlights

The presenter is short shares of Sphere Entertainment Co. (SPHR) due to significant concerns about the company's upcoming debt maturity in October. While many investors have a bullish view of company prospects, there are doubts about Sphere's ability to successfully negotiate with lenders and raise enough equity to address its substantial $890 million outstanding debt. Despite projected cash flows, there are uncertainties about Sphere's capacity to handle further investments given its high leverage ratio of ~4.7x. Moreover, doubts persist regarding the company's ability to develop new Spheres, as high construction costs and potentially lower profit margins may undermine expected profitability. While the asset will have a place, the presenter does not see it as a good business and expects the euphoria around the stock to subside as results come in weaker than expected and the company deals with its high leverage.

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Idea Discussion

Commentor 1 - 2 weeks ago

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