While viewers from around the world tune in to the 2024 Olympics in Paris to watch their favorite athletes compete, the games could also give investor portfolios a boost.
The opening ceremony for the 2024 Olympics is on July 26.
The opening ceremony for the summer Olympics on Friday launched two weeks of contests between world class swimmers, gymnasts, equestrians, and more.
It also kicked off a chance for three companies that have a stake in the games to shine.
Comcast stock likely has the most to gain. This is the 18th time NBCUniversal will be a broadcaster of the games, according to management on the company’s recent earnings call. This year, viewers can watch on both legacy television channels as well as the Peacock streaming service.
Bringing in new subscribers is important for Comcast. Its media segment, which includes television and streaming on Peacock, increased 2.1% in the second quarter from the prior year. Meanwhile, revenue from theme parks and studios—two other segments in the Content & Experiences division—saw revenue declines.
“We feel very well positioned for the second half of the year with the Olympics coming up,” said Comcast President Michael Cavanagh on the earnings call.
Argus Research analyst Joseph Bonner rates Comcast as a Buy with a $50 price target. He wrote in a note Thursday that “while the television advertising market has been uneven at best, Comcast should benefit in 2024 from both the Paris Summer Olympics and the bump in political advertising from the quadrennial presidential election cycle.”
According to Dow Jones Market Data, Comcast shares have increased an average of 0.8% on the first day of the Olympics over the past 20 years.
DraftKings is another stock to keep an eye out for as the games get going. Sports betting fans can make online bets on some of their favoriteevents. And as online sports betting becomes legal in more states and more popular with the public, investors will be watching to see how the games impact DraftKings.
The stock could use a boost. Shares have gained 3.8% this year, compared with the 15% increase of the S&P 500. On May 3, the company reported a wider first-quarter loss than analystsexpected.
Later that month, Illinois senators passed a new budget that includes a tax increase on sports-betting operators. Recent scandals in the online sports betting space have also increased investor concerns that tighter regulations could be coming.
With the NBA and NFL seasons on pause, an increase in betting this summer would be a nice boost for DraftKings.
Nike is a company with a longstanding relationship with the Olympics, and the stock performance proves it. Since 2004, shares rise an average of 1.4% on the first day of the Olympics, which has become abig advertising eventfor the company with athletes showing off their track suits and shoes with the well-known swoosh.
A marketing event of this size could be just what the company needs. The stock has felt the pain this year of a pressured consumer and competition, falling 33% so far in 2024.
Chief Executive John Donahoe said on Nike’s earnings call on June 27 that the Olympics “offers us a pinnacle moment to communicate our vision of sport to the world.”
So while U.S. viewers cheer on Simone Biles as she goes for gold, market participants could watch these stocks take first place.
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