Live Nation, MSG Entertainment Shares Rally on News of COVID-19 Test
Live Nation's shares increased as much as 11.1% on Thursday after encouraging news about a quick test for COVID-19.
Live Nation’s shares increased as much as 11.1% on Thursday after encouraging news about a quick test for COVID-19. Abbott Labs announced Wednesday that the U.S. Food and Drug administration issued an Emergency Use Authorization, a fast track that allows unapproved medical products for public use, for a 15-minute test for a COVID-19 infection. Abbott plans to sell its BinaxNOW tests for $5 apiece.
The latest bit of positive testing news also buoyed prices of other out-of-home entertainment and travel companies: Six Flags +12%; Carnival +9.2%; Delta Airlines 7.5%; Hilton 2.9%; gambling company Wynn 4.2%. Venue operator/producer Madison Square Garden Entertainment’s shares rose 4.5% on Thursday.
Recent developments for potential coronavirus vaccines provided Live Nation’s share price with a 9.3% bump on Aug. 10 and 5% gain on Aug. 24. The two days of gains have helped the company’s shares recover most of its losses since concerts were suspended on March 12. As of Thursday, Live Nation shares are up 21.9% in the last month and 166.7% from its pandemic-low of $21.70.
Businesses holding concerts can use BinaxNOW to help ensure fans will not spread the virus to others. The test kit comes with a free mobile app that will display a “digital health pass” that’s updated each time a person is tested through a healthcare provider. “Organizations will be able to view and verify the information on a mobile device to facilitate entry into facilities,” the press release explains.