As the global middle class expands, demand for entertainment products and services is rising. The entertainment industry has also historically been relatively resilient, even during periods of economic uncertainty and downturn. Investors may want to look into entertainment stocks as a way to capitalize on this growth and persistent demand.
Entertainment stocks are shares of companies that derive substantial portions of their revenues from the entertainment industry. These companies may operate in other industries and sectors too, but entertainment stands out as core to their operations. Investors who take a buy-and-hold approach to leaders in entertainment could profit significantly over time.
Top entertainment stocks for 2026
These six entertainment companies are worth watching:
| Name and ticker | Market cap | Current price | Industry |
|---|---|---|---|
| Walt Disney (NYSE:DIS) | $175.9 billion | $99.13 | Entertainment |
| Take-Two Interactive Software (NASDAQ:TTWO) | $38.6 billion | $210.61 | Entertainment |
| Roku (NASDAQ:ROKU) | $13.5 billion | $95.88 | Entertainment |
| Tencent (OTC:TCEHY) | $630.9 billion | $71.28 | Interactive Media and Services |
| FuboTV (NYSE:FUBO) | $419.7 million | $1.22 | Interactive Media and Services |
1. The Walt Disney Company
NYSE: DIS
Key Data Points
Disney (DIS -0.02%) has a collection of entertainment franchises and a library of classic films and television series that trounce those of every other company on the planet. The company showed the enduring value of its properties amid the COVID-19 pandemic with the explosive growth of its Disney+ streaming service.
The rapid rise of Disney+ has highlighted its long-term growth potential in the streaming space and the value of the company’s franchises. Disney's other business segments -- such as its film business and theme parks -- also appear to be recovering from pandemic-related pressures.
With Star Wars, the Marvel Cinematic Universe, the Pixar catalog, and a long list of others, the House of Mouse has more valuable entertainment properties than it’s possible to mention here. Disney's assets enable it to adapt and thrive amid significant changes in the entertainment landscape.
2. Take-Two Interactive
NASDAQ: TTWO
Key Data Points
The global video game industry has enjoyed tremendous growth over the past decade, and Take-Two Interactive (TTWO +1.10%) has been one of the medium’s biggest winners. The publisher is best known for series including Grand Theft Auto, NBA 2K, and Red Dead Redemption. It also has a deep catalog of other gaming franchises that are capable of putting up solid performances.
After establishing a leading position in the console-and-PC gaming markets, Take-Two is setting its sights on delivering big growth in mobile. Thanks in part to its acquisition of mobile-game leader Zynga, the company has been able to reach an even wider audience.
In addition to bringing new gaming properties under its corporate umbrella, the Zynga acquisition is allowing Take-Two to bridge more of its own properties to smartphone and tablet platforms and get the most out of its franchise catalog. The company has shown it can sustain hit series and develop fresh ones, and the big mobile-gaming push could help take the business to the next level.
3. Roku
NASDAQ: ROKU
Key Data Points
Roku (ROKU +4.24%) is spearheading the cord-cutting revolution. The company’s streaming hardware is widely integrated with smart TVs, and its leading position in this category allows it to function as a distributor for other companies’ streaming content and services. The business got its start selling set-top streaming boxes but has evolved to generating most of its profits from distribution.
Roku earns ad revenue from other streaming services accessible through its application. It also operates the Roku Channel, a free, advertising-supported streaming service.
The ads created thanks to strong data analytics capabilities and digital advertising expertise are providing many new growth opportunities for this entertainment company. Roku also generates revenue by licensing its smart television operating system software.
Roku is bringing new members into its ecosystem at an impressive rate and building a large user base. It's also increasing its average revenue per user.
4. Tencent Holdings
OTC: TCEHY
Key Data Points
Tencent (TCEHY +1.92%) is China’s biggest technology and media conglomerate. The company is the world’s largest video game publisher by revenue and owns huge franchises, including League of Legends, Honor of Kings, and Clash of Clans. The company also holds substantial equity stakes in many leading gaming companies, including Fortnite creator Epic Games. Tencent will likely continue to acquire companies that further strengthen its leadership position in interactive entertainment.
Video games aren’t the only segment of the entertainment sector in which Tencent participates. The company has its own movie production studio and a wide range of investments across the film and music industries. It also owns stakes in several social media platforms, including Snap (SNAP +0.99%), Huya (HUYA +1.78%), and Reddit (RDDT +4.38%).
Tencent has a diverse collection of businesses, all of which offer growth drivers in their own right and strengthen the company’s entertainment businesses. Tencent owns WeChat -- another social media platform that's also a messaging service, e-commerce platform, payments processor, and more. WeChat has roughly 1 billion active users, which helps Tencent monetize its own entertainment content and generate revenue from third parties in the entertainment industry.
5. FuboTV
NYSE: FUBO
Key Data Points
FuboTV (FUBO +3.36%) delivers premium sports programming as a streaming service. Live sports broadcasts are one of the biggest remaining draws for cable and satellite television providers, but the consumption of sports content will likely migrate to streaming formats. Fubo wants to spearhead that transition.
Fubo differentiates itself by concentrating on serving sports enthusiasts. The company aims to reach customers who are willing to pay premium prices for expansive content offerings, with basic plans starting at roughly $85 per month. The sports-focused streaming platform is subscribing users at a rapid clip.
FuboTV is still a relatively young company, and the stock probably is not a great fit for investors with low risk tolerances. The company does have some other intriguing growth opportunities, including a major partnership with Disney and efforts to expand into the burgeoning online sports betting industry. Successfully integrating sports betting into Fubo's platform offerings could further boost engagement by its target audience and improve monetization.
How to invest in entertainment stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Pros and cons of investing in entertainment stocks
Entertainment companies tend to be hit-driven businesses. That means that sales and earnings trends can live and die based on whether crucial releases wind up being successful. While it is possible to make estimates about which entertainment releases will be successful based on brand strength, distribution advantages, and other factors, there is still a lot of uncertainty involved in charting the outlook for key entertainment products and contract terms that can affect share prices.
What makes a good entertainment company investment?
Outlooks can change quickly for companies in the entertainment industry, but there are some key factors that investors can look at to help pick the best entertainment stocks.
- Strong entertainment companies often have popular franchises and distribution channels that give them advantages over competitors.
- The best entertainment companies have consistent sales and earnings growth.
- They perform well in terms of industry-specific considerations such as subscriber growth, revenue per user, and how well key releases and service updates are received.
- Many top entertainment companies are also engaged in other types of business, so it's important to pay attention to how those other operations affect overall performance.
Tips for investing in entertainment stocks
Look at a company's price-to-earnings (P/E) and price-to-sales (P/S) ratios in conjunction with expected growth outlooks.
Consider the strength of franchise properties owned by the entertainment company.
Consider the role that content licensed from third parties plays in a company's sales, earnings, and competitive moat. Access to valuable licensed content can be a big strength, but heavy reliance on third-party licenses also creates potential fault lines for a business.
Entertainment consumption trends are in flux, and user-generated social media content and AI content are surging in the attention economy. Determine whether the underlying businesses of entertainment stocks are capable of capitalizing on or weathering these trends.
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Investing in entertainment stocks FAQ
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