Robert has reported for a variety of international publications including the Associated Press, The Guardian, Vice, and Decrypt. Current areas of interest include the political economy of technology, cryptocurrencies, and privacy. Robert has a Bachelor of Science from UCL, and a Master's degree from the University of Oxford's Internet Institute.
Endeavor Group Holdings is a new public company in the entertainment space. It owns several popular brands and intends to buy more. In this article, we’ll explain what Endeavor Group Holdings is, why investors like it, and how to buy shares.
What is Endeavor Group Holdings?
Endeavor Group Holdings, or simply Endeavor (formerly known as William Morris Endeavor Entertainment) is a holding company for talent and media agencies. Founded in 2009 after the merger of the William Morris Agency Endeavor Agency, it represents artists in TV, movies, music, theater, digital media, sports, and publishing.Get started with Wealthsimple Trade. Sign up today and start building your portfolio with a free stock.
It also owns the Ultimate Fighting Championship (UFC) and the Miss Universe beauty pageant, as well as several smaller sports brands, such as Professional Bull Riding and Euroleague Basketball. It represents over 800 events and 37,000 concerts annually.
What is Endeavor Group Holdings’ current market cap?
As of May, 2021, Endeavor Group Holdings’ market cap is $7.57 billion. Market cap refers to the total dollar value of a company’s outstanding shares. This includes shares owned by stockholders, private investors, and company officials. We use this metric to gauge the value of a company’s stock as opposed to easily manipulated metrics like revenue or total assets.
When is the Endeavor Group Holdings IPO Taking Place?
Endeavor Group Holdings’ IPO took place on April 29, 20021. It was listed on the Nasdaq under the ticker symbol EDR. The company sold 21.3 million shares at $24 each. It raised about $511 million at a valuation of a little over $6 billion.
This is the company’s second attempt at an IPO. A previous effort was canceled in 2019 after investors complained that they were discouraged by the company’s complex finances.
Why are people interested in buying Endeavor Group Holdings shares?
Endeavor’s brand licensing business is one of the largest in the world. It represents over $16 billion in annual sales, including record sales for pay-per-view buys in 2020.
Furthermore, Endeavor recently acquired the remaining stake in UFC. It now owns 100% of the mixed martial arts organization, which gives it access to 625 million fans around the world, which just trails the NBA and other major sports leagues. UFC’s Fight Pass subscription service saw 40% growth in 2020.
Investors also like Endeavor’s plans for growth. Endeavor plans to expand its experiential offerings, invest in adjacent segments, and pursue more mergers and acquisitions. While fiscal revenue fell from $4.57 billion to $3.48 billion during 2020, analysits believe that was due to the pandemic’s influence on the entertainment industry, especially in regards to live events.
How can I buy shares of Endeavor Group Holdings?
Since Endeavor Group Holdings has already completed its IPO, shares are available to purchase. In order to trade its stock, you should follow these four steps:
Step 1: Open a brokerage account
Before you can trade stocks, you must open an account with a brokerage. A brokerage is a financial institution that facilitates the trading of stocks and other securities. If you already have an account with a brokerage, you can use it to purchase shares of Endeavor Group Holdings.
If you need to open an account with a brokerage, we recommend finding one that offers low fees and an easily understandable pricing structure. It should also offer a simple trading platform and access to other securities in case you decide to trade different products in the future.
Once your account is open, you’ll need to deposit funds. This is money you’ll use to purchase shares of Endeavor Holdings Group. The broker will require this as part of its onboarding process.
Step 2: Decide how many shares you want
Once your trading account is open, you will need to determine how many shares of Endeavor Holdings Group you would like to purchase. Like most investors, however, you probably don’t think in terms of shares, but in terms of your investment. In this case, simply divide the amount you want to invest by the price of each share.
For example, if you’re willing to invest $3,000 and Endeavor Holdings Group costs $25 per share, you can afford to buy 120 shares. ($3,000 / $25 = 120).
A word of caution: Like any stock, purchasing Endeavor Holdings Group comes with some risk. As much as we like share prices to rise, there’s a chance they decrease. We recommend diversifying your portfolio with different kinds of securities to reduce your overall risk, and never investing more money than you can lose.
Step 3: Choose your order type
Before you can execute your trade, you’ll need to decide if you’ll place a market order or a limit order. Each method affects the total you will pay for those shares.
Market order: This is an order to trade the stock at the current price when the order reaches the exchange. You don’t have complete control over the final price. The price you ultimately pay won’t necessarily match the order price, though they should be close. Popular stocks that trade often are usually filled at prices similar to their orders, but there are no guarantees.
For example, if Endeavor Holdings Group is currently trading at $32 a share and you place a market order, you’ll most likely pay something close to $32, but there could be some fluctuation. You might end up buying at $32.75 or $31.50.
Limit order: A limit order is an order to buy or sell a security at a specific price. The final price you pay will match your order price exactly. Purchases are only executed at the limit price or lower. Sales are executed at the limit price or higher. This means you have complete control over how much you spend, but it may take some time to execute a trade according to your criteria.
For example, if Endeavor Holdings Group is currently trading at $32 a share and you place a limit order to purchase shares at $29 a share, your order will only be fulfilled when the price falls to $29 or less.
Step 4: Execute the trade
Your final step is to execute your trade through your trading account. At this point, your brokerage takes care of everything for you. Eventually your broker will deduct the funds from your account and deposit your shares. If the broker can’t fulfill your order that day, it may leave the order open until it’s fulfilled or cancel it at the end of the day. Check with your broker to learn how they handle these situations.
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