Yahoo Finance Messi to Miami (3 Stocks to Benefit)
Lionel Messi: The GOAT
Football is the world’s most popular sport, or as Americans call it, soccer. At the top of the sport is Lionel Messi, an Argentine soccer player widely regarded as one of the greatest soccer players of all time. Just how good is Messi? Messi has won a record seven “Ballon d’Or” (Golden Ball) awards – soccer’s version of Player of the Year. During his time in the Champions League, Messi earned a record number of trophies, including four titles with the renowned soccer club Barcelona. To top it all off, as captain of the 2022 Argentine national team, Lionel Messi scored seven goals and steered the team to its first World Cup victory since 1986.
Shock Move to Miami
After playing for another premier soccer club, (Paris Saint Germain (PSG)), Messi had to decide on his next destination as his contract ran out. In a shock decision, Messi declined a record $500 million offer from Saudi Club Al Hilal to accept an offer from Major League Soccer’s (MLS) Inter Miami. The decision was a shock for two reasons. First, MLS does not have nearly the same prestige as Messi’s previous teams, such as Barcelona. Second, Inter Miami was the worst team in the MLS last season. Regardless, the decision from the world’s most sought-after superstar has drastic business implications.
3 Winners
Apple (AAPL)
Messi’s deal with the MLS is yet another win for Apple. (As if AAPL needed another win). Last year, Apple inked a 10-year deal to broadcast all regular season matches via its Apple TV platform (this included Inter Miami matches). In fact, Apple helped to coerce the Argentine legend by offering him a slice of the subscription revenues – which will undoubtedly spike to record highs with the addition of Messi. While the short-term implications are likely to be a drop in the bucket for a $3 trillion company, we will see if it gets mentioned on the upcoming AAPL earnings call on August 3rd. Regardless of the impact, AAPL’s positive Zacks Earnings ESP (Expected Surprise Prediction) score suggests the company is likely to surprise to the upside when it reports.
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Adidas (ADDYY)
Last year, Adidas severed ties with Kanye West after the famous rapper’s antisemitic comments went viral. Though the stock has stabilized since the initial hit, Adidas is still recovering from the more than $500 million expected hit to its operating profit.
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However, the German athletic apparel and footwear company is seeking to fill the void. Though Adidas has sponsored Messi for years, Adidas made sure to lock him in by offering the star a slice of revenue from sales of Messi apparel. The move to Miami will likely trigger a whole new market of Messi fans and of Inter Miami (Adidas) apparel sales. Analysts agree. ADDYY earns a beast possible Zacks Rank #1 (Strong Buy) rating, and four analysts have raised estimates for the current quarter in the past 60 days.
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Anheuser-Busch InBev (BUD)
Adidas is not the only company suffering from a public relations nightmare. Inbev, the parent company of Bud Light, suffered a boycott from its client base and a drop in sales after the company hired transgender TikTok personality Dylan Mulvaney to promote Bud Light during March Madness.
Though the Belgian beer juggernaut is still weathering the storm from the boycott, Messi’s longtime sponsor may benefit from the big move and help to smooth sales. Furthermore, from a valuation perspective, the boycott-induced drop in the stock has made it attractive again. BUD’s price-to-earnings ratio is at its lowest level since the COVID-19 pandemic lows.
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Bud is also shaping up from a technical perspective. The stock is retaking its 200-day moving average after slicing below the level last month.
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