Paris 2024: Olympic Stocks to Keep on Your Radar

Moomoo News Global wrote a column · Jul 26 06:39

Paris 2024 Olympics are poised to commence on the 26th of July, heralding the inaugural edition to cast off the pandemic's gloom. Beyond the realm of athletics, the Olympics serve as a catalyst for economic prosperity, presenting an opportune moment for corporations to showcase their offerings to a worldwide viewership and expand their clientele base.

The Paris Olympics have signed on 79 sponsors, including 15 Global Partners like $Anheuser-Busch Inbev (BUD.US)$, $Airbnb (ABNB.US)$, and $Coca-Cola (KO.US)$, all part of the IOC's TOP program. The remaining sponsors are National Partner. Among them, 7 are Premium Partners, 13 are Official Partners, and 44 are Official Supporters. The Premium Partners include $ACCOR SA SPON ADR EA REPR 0.2 ORD SHS (ACCYY.US)$, $Orange SA (ORAN.US)$, $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$, Groupe BPCE, $CARREFOUR S DRC (CRRFY.US)$, EDF, and $Sanofi (SNY.US)$.

Stocks to Watch as Olympic Fever Rise

Companies that participate in the Olympics through sponsorship, advertising, or cooperation often benefit from the high exposure and increased sales that the Olympics brings. Here are some industries and companies worth noting.

Paris 2024: Olympic Stocks to Keep on Your Radar

Sports & Fashion

Companies are expected to achieve a lot of brand exposure through the Olympics, further increasing their visibility and short-term sales. Examples include sportswear and footwear brands like Nike, Adidas, On, and Lululemon.

$LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$: Provided a high sponsorship fee of 150 million euros for this Olympics, and its brands appear in almost every corner of this Olympics. It has designed the Olympic medals, Olympic torch luggage, French Olympic team uniforms, volunteer uniforms, etc.

Culture & Media

Companies are responsible for event broadcasting, advertising agency, and peripheral cultural product development.

$Comcast (CMCSA.US)$: Peacock will exclusively stream every Olympic event for U.S. viewers, offering thousands of hours of live and on-demand content. Kelly Campbell, president of Peacock, believes that the Olympics will significantly improve Peacock's position in the fiercely competitive streaming market.

Food & Beverage

During major sporting events, the demand for beer, snacks, and other consumer goods usually increases.

$Anheuser-Busch Inbev (BUD.US)$: For the first time, it has launched a global partnership with the Olympics and became the first beer producer to sponsor the Olympics. It promotes its non-alcoholic beer drink Corona Cero at this Olympics.

$Coca-Cola (KO.US)$: Will hold events centered on the Paris Olympics in more than 70 cities around the world and attract consumers through pop-up stores and other forms.

Technical Support

Companies that provide event security, information technology support, and services may be of interest due to the high security requirements during the Olympics.

$Alibaba (BABA.US)$: Since 2017, Alibaba has been one of the global partners of the Olympics. Alibaba provides advanced cloud infrastructure and services to the Olympics through the Alibaba Cloud intelligent platform.

$Visa (V.US)$: It has always been a global partner and exclusive payment technology partner of the Olympics. Visa has joined Chase bank to build a floating lounge for high-end credit card holders on the Seine River. With cardholders showing off their "Parisian hospitality" on social media, it can attract more people to apply for the $550 annual fee credit card.

Tourism is quiet

Travel providers, airlines, and hotels typically profit from the Olympics' global viewership surge. Yet this year, Paris's Olympic-integrated city concept has raised concerns among international visitors about transportation and costs, dampening their enthusiasm to attend the games in person.

The Paris Tourism Department expects the Olympics to attract 11.3 million tourists, but only 10% of them are from abroad. Air France-KLM projects a 160-180 million euro revenue dip in Q3 due to Olympic because tourists seem to be actively avoiding plans to go to Paris during the Olympics, with a quick recovery after Olympics.

CoStar predicts a modest 80% occupancy rate for Paris hotels during the Olympics, lower than London's 90% in 2012 and Rio's 94% in 2016.

by moomoo News Olivia

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