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Investment Olympics: Five market sectors trying to get a piece of the Olympic pie

Views 506 Jul 29, 2024

On July 26, 2024, the 33rd Summer Olympic Games kicked off in Paris with the opening ceremony and they will run until the closing ceremeony on August 11, 2024. Along with boosting tourism industries, undergoing infrastructure improvements, and promoting the city's numerous cultural sites, the impact on the host's local economy can be huge but costly. With more than 10,000 athletes across 200+ countries participating in this year's games, the Olympics is big business globally.

For investors seeking potential their own Olympic participation, some may look to Olympic stocks while others may take a broader view by reviewing different sectors impacted by the Olympics. Read on to learn more about five sectors seeking to bring home gold this year.

1. Technology

Artificial intelligence (AI), welcome to the Olympics! New for the Olympics is using this technology not only for Paris 2024, but also for future Games.

According to the International Olympic Committee (IOC), one important AI use will be safeguarding athletes from cyber abuse. The IOC has said that during the games, it expects about half a billion social media posts; it plans to flag any potential abusive messages. AI may also help create video highlights across formats and languages throughout the Games.

AI will also be used behind-the-scenes such by helping to create more efficient planning of future Olympic games. This will come from the real-time monitoring of energy consumption at Paris 2024, and with the collected data, it will be used to help with future planning.

And not to miss an interesting technological opportunity, two tech giants are sharing their AI offerings in this year's Olympics: Intel and Google.

  • Intel (NASDAQ:INTC): Serving as the official AI platform partner through an IOC partnership, Intel will offer a new chat service on the Athlete365 platform. For accredited athletes, the service assists them with Frequently Asked Questions covering various topics including anti-doping rules and social media guidelines.

    • Intel will also launch AI experiences to help change the Olympic experience for athletes, fans, organizers, and global viewers by introducing Automatic Highlights Generation. This puts together top moments from 14 sports and disciplines to create tailored highlight reels, based on preferences. This can enable content personalization and engage digital and social media audiences.

  • Google (NASDAQ:GOOG): The search engine giant has been named the Game's official AI search partner for Team USA. This represents the inaugural time that a tech company has partnered with the sport non-profit. The company will introduce AI in the U.S. broadcast of the games through NBCUniversal, enabling their sports broadcasters to utilize Google Search's AI overviews to answer questions such as why pool-lane assignments matter in Olympic swimming competitions.

2. Retail

From specially-designed gear, ads, and pop-up, retail companies are looking for a bump in their sales from the Olympic games. Whether it's the old stalwarts like Nike or Levi's, to newer, global ones like On, these retail companies will try to make a mark on fans and athletes.

  • Nike (NYSE:NKE): The athletic footwear and apparel company has spent the most for this year's Olympics than any of the previous ones. From opening new stores, launching new Nike Air sneakers for athletes to holding events before and after the Olympic games, the company is hoping for a boost in their sales. Nike CEO James Quincey said,“For the first time, we are running a global shopper activation at a full portfolio level activating five categories across 60 countries to help drive shopper basket incidents.”

  • Deckers Outdoor (NYSE:DECK): The athletic shoe and apparel company and the maker of the popular HOKA brand shoes, opened a Paris store in May--its second European retail store.

  • On Holding AG (NYSE: ONON): The Swiss global sportswear company backed by Roger Federer will have two Paris stores during the Olympics; they will serve as running community hubs to connect with company-sponsored athletes.

  • Levi Strauss (NYSE: LEVI): In April, the denim maker announced plans to reopen its flagship store in Paris’ Champs-Élysées, one of most highly-trafficked shopping areas worldwide.

  • Ralph Lauren (NYSE: RL): For its ninth consecutive Olympics and Paralympics games, the retailer will outfit Team USA by creating athlete uniforms worn at the opening and closing ceremonies and an athlete wardrobe including blazers, jeans, and polo shirts to wear during the Games and after.

3. Media and Entertainment

Taking a dominant position for media and entertainment at the games is media company NBCUniversal (NASDAQ: CMCSA). It serve as the official broadcaster of the games and will do so across all of its platforms including NBC, CNBC, E!, Golf Channel, Peacock, USA Network, Telemundo and Universo (the Spanish-language networks), NBCOlympics.com, and the NBC Sports app.

In June, the company said its U.S. Television coverage will include an array of celebrities and social media influencers. It will use generative AI to draw viewers into watching the games live vs using streaming or watching online clips. And with the time difference, the Games will dominate the network's daytime programming by featuring popular live events in the mornings and afternoons. Paris 2024 will have more programming hours on the NBC broadcast network than any previous Olympics.

Another media company also wants to a piece of the broadcasting pie: Warner Brothers Discovery (Nasdaq: WBD). It will try to gain international viewers and increase its direct-to-consumer business by launching its Max streaming service to over 25 additional markets across Europe.

According to Warner Bros Discovery’s Independent Director David Zaslav said, “Max will be the only place where viewers across Europe will be able to watch every part of the Olympic games.”

4. Aviation

For the games, 15 million visitors are expected to visit Paris. However, according to the Centre for Law and Economy of Sport, only 2 million are expected to arrive from overseas. This will affect some airlines.

  • Air France: A Delta partner and subsidiary of the Air France-KLM Group, the French airline serves as the official airline of the Olympics and prior to the game's start, it had experienced a slump in bookings. Air France has forecast a loss upwards to $195 million (€180 million), as reported by Bloomberg, from a decline in demand as travelers avoid Paris due to large crowds, increased hotel rates, and higher restaurant prices.

    • It's not all gloom and doom as flight bookings to the host city (the first time hosting in 100 years) are expected to increase by 10% year-on-year from June 6 onwards, according to flight ticketing data firm ForwardKeys. This dramatically differs from the 2016 Rio Games (a 116% increase in tourist arrivals) and Tokyo Games (20% jump amid the pandemic). Air France may also have the opportunity to gain some long-term benefits from infrastructure enhancements in preparation for the games, including upgrades to Paris' Orly Airport.

  • Delta (NYSE:DAL): Serving as the official airline for the Olympic and Paralympic (August 28 to September 8) athletes, Delta noted this opportunity isn't expected to positively impact its numbers. Delta Air Lines CEO Ed Bastian has said the airline expects to undergo $100 million in losses during this period of time due to reduced bookings as travelers stay away from Paris' Charles de Gaulle airport.

5. Beverage

For this year's Olympics, think non-alcoholic (NA) drinks, soda, and energy drinks.

Paris represents the second consecutive summer games banning alcohol sales and purchases at stadium venues; however, allowed under France’s 1991 Evin’s Law, catered hospitality areas and VIP suites are the exceptions; alcohol will flow in these areas.

But it's not all grim for beverage companies: a main benefit participating in Paris 2024 is an opportunity for brands to boost customer engagement from marketing campaigns related to the Games. Here's some participants.

  • Coca-Cola (NYSE: KO): Since 1928, the company has served as the longest-standing worldwide partner (and also the ones who select the Olympic torchbearers) for Olympic and Paralympic Games, providing different beverage types for the athletes, fans, and officials. This year, offerings come from five company brands, including athlete sponsorships through its global hydration, sports, coffee, and tea category at Powerade. Consumers can also engage in the brand by participating in daily games.

  • AB InBev (NYSE: BUD): The company serves as an official sponsor of the Games and its Corona Cero non-alcoholic offering is the official beer.  

  • Celsius Holdings (NASDAQ: CELH): While not an official sponsor, the company hopes to increase its brand awareness by going straight to the Olympic and Paralympic athletes through sponsorships and ads campaigns.

Ways moomoo can help you during the Olympics

With a wealth of information to sift through to learn about investments and make decisions, moomoo's free, intuitive tools can not only help you in your daily investment journey, but if users dig a little deeper, they can also potentially assist with the Olympic sectors.

News: Don't want to miss any news? Discover moomoo's 24/7 real-time financial news feature and obtain information faster and more conveniently. Using consolidated newsfeeds from Bloomberg, Dow Jones, Reuters, CNBC and other credible news sources, discover the latest news all in one place or read a curated list of market highlights delivered every morning by moomoo’s editorial team.

Earnings tools: Curious about some participant companies and their upcoming earnings report potentially impacted by the Olympics? Utilizing the Earnings Calendar, users can link to their personal calendar of choice and filter earnings reports they're interested in by release time and stock type.

Screener: Want to follow your favorite Olympic sectors and stocks? Set them up through Moomoo's Stock Screener. This provides precise stock screening results in real-time that meet complex screening conditions.

Community: What are moomoo users thinking about the markets? Among moomoo's 22+ million users, check out this inclusive user community with its wealth of information through posts, interactions, responses, and conversations with like-minded investors. Find inspiration and help advance your investment education.

While the summer Olympics occurs every four years, learning about investments, practicing trading ideas, and gaining knowledge through paper trading as well as staying abreast of the market, moomoo can help you participate and learn 24/7. Create your own training plan and begin your investment journey today to discover discipline and potential accomplishments that can happen along the way.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy.

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