The latest model developed by China’s Moonshot AI startup reinforces one important thing about the current AI revolution: The technology is going to move faster from here and get better, making it tougher for investors to pick non-AI winners in the market.
A new note from the Goldman Sachs team, led by strategist Ben Snider, laid out several non-AI investing themes, including one that caught our attention: a screen of consumer-experience stocks, ranging from vacations to wrestling matches.
These stocks may be insulated from AI disruption risk, the analysts wrote, because in-person events require, well, in-person attendance — not attendance by an AI agent.
“The combination of strong secular demand and undemanding valuations makes companies offering physical consumer experiences an attractive investment theme,” Snider said.
The 36 stock picks
The Goldman Sachs team selected 36 stocks in the movie and entertainment industry; hotels, resorts, and cruise lines; casinos and gaming; and specialized consumer services and leisure facilities. All the picks have market caps greater than $2 billion and are businesses centered around physical experiences.
The group has generated a 17% year-to-date return, versus an 11% gain for the equal-weighted S&P 500 (^SPXEW). Here are the names:
Movies and entertainment: Walt Disney Company (DIS), Live Nation Entertainment (LYV), Liberty Media Formula One Group (FWONK), TKO Group (TKO), Madison Square Garden Sports (MSGS), Sphere Entertainment (SPHR), Atlanta Braves Holdings (BATRA, BATRK), and Madison Square Garden Entertainment (MSGE).
Hotels, resorts, and cruise lines: Marriott International (MAR), Royal Caribbean (RCL), Hilton Worldwide (HLT), Viking (VIK), Carnival (CCL), Hyatt Hotels (H), Norwegian Cruise Line (NCLH), Wyndham Hotels & Resorts (WH), Choice Hotels International (CZH.F), Travel + Leisure (TNL), Hilton Grand Vacations (HGV), and Marriott Vacations Worldwide (VAC).
Casinos and gaming: Las Vegas Sands (LVS), MGM Resorts International (MGM), Wynn Resorts (WYNN), Boyd Gaming (BYD), Caesars Entertainment (CZR), Churchill Downs (CHDN), Red Rock Resorts (RRK.F), PENN Entertainment (PENN), and Monarch Casino & Resort (MOI.F).
Explore the latest gaming industry news and insights on AlphaSpace.
Specialized consumer services and leisure facilities: Liberty Live (LLYVK), Life Time Group (LTH), Vail Resorts (MTN), Planet Fitness (PLNT), OneSpaWorld (ORW.F), and United Parks & Resorts (W2L.F).
Snider noted that the median consumer experience stock trades at 12 times forward EBITDA.
