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Sept. 29, 2022, 10:59 a.m. EDT

What Are The Best Stocks To Invest In? 4 Entertainment Stocks To Know

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Sep 29, 2022 (StockMarket.com via COMTEX) -- Entertainment stocks are a sector of the stock market that includes companies involved in the production and distribution of entertainment products and services. The sector includes a wide range of businesses, from movie studios and streaming services to video game developers and more. In addition, entertainment stocks tend to be very volatile, as they are highly dependent on consumer spending patterns.

This means, when the economy is doing well, people are more likely to spend money on leisure activities, which in turn can drive up the stock prices of entertainment companies. However, during economic downturns, people often cut back on their spending on entertainment, leading to lower stock prices. For investors, this volatility can provide an opportunity to buy stocks at a discount during periods of economic distress and sell them at a profit when the economy recovers.

Given the current state of the economy, entertainment stocks may be an attractive investment for risk-tolerant investors. With this in mind, here are four top entertainment stocks to check out in the stock market today .

Entertainment Stocks To Buy [Or Sell] Now

1. Roblox (RBLX Stock)

Starting off this list today is US-based technology entertainment company Roblox Corporation (RBLX). Specifically, Roblox operates an online video game platform that allows gamers to create, develop, and monetize games or experiences for other players. Simply put, the company offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. For a sense of scale, last month Roblox reported its second-quarter 2022 average daily active users came in at 52.2 million.

In September, Roblox announced August 2022's key metrics. Diving in, the company reported its estimated revenue was in the range of $208 million to $211 million. This represents approximately 22% - 24% during the same period, a year prior. Additionally, Roblox said its daily active users (DAUs) for August were 59.9 million, which is 24% on a year-over-year basis.

Aside from that, last month Roblox Corporation reported its 2nd quarter 2022 financial results. In the report, Roblox reported a Q2 2022 loss of $0.30 per share, along with revenue of $591.2 million. This is versus the Street's consensus estimates of a loss of $0.23 per share with revenue of $658.5 million. Meanwhile, Roblox announced a 30.2% revenue increase on a year-over-year basis. What's more, the company announced its Average Daily Active Users (DAUs) increased 21% year-over-year to 52.2 million.

So far this year, Shares of Roblox stock have dropped over 63%. On Thursday morning, RBLX stock is down another 5% at $36.11 per share. Considering this, do you think now is a good time to invest in Roblox stock for a buy-and-hold opportunity?

[Read More] 3 Marijuana Stocks For Your October 2022 Watchlist

2. Netflix (NFLX Stock)

After that, let's take a look at streaming giant Netflix Inc (NFLX). For starters, Netflix's primary business is a streaming video-on-demand service. In addition, the company's platform is available in almost every country worldwide. Netflix primarily generates revenue from subscriptions to its eponymous service.

Specifically, the company offers its subscribers a broad variety of award-winning TV shows, movies, anime, documentaries, and much more. Meanwhile, the company's business model allows users to watch as much as they want, whenever they want commercial-free for one monthly subscription fee. For a sense of scale, today Netflix has over 200 million paid subscriptions spread out across 190 countries worldwide.

Moving on, this month, Netflix announced they will report their third-quarter 2022 financial results on Tuesday, October 18, 2022, after the market closes. In the meantime, let's take a look at how Netflix performed in the second quarter of 2022.

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