With a market cap of $38.8 billion, TKO Group Holdings, Inc. (TKO) owns and manages sports and entertainment intellectual property while producing and licensing live events, programming, and a variety of filmed content across digital, linear, and pay-per-view platforms. It also offers UFC FIGHT PASS, a direct-to-consumer streaming service that provides live events, on-demand content, and original programming.
Companies valued more than $10 billion are generally classified as “large-cap” stocks, and TKO Group fits this crioffering products and services that rangeterion perfectly. TKO is involved in merchandising, sponsorships, and advertising, with products and services ranging from apparel and video games to in-venue and digital advertising assets.
Shares of the New York-based company have fallen 8.3% from its 52-week high of $212.49. TKO stock has gained 11.9% over the past three months, slightly outpacing the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which rose 10.9% during the same period.
In the longer term, TKO Group's shares have surged 37.8% on a YTD basis, surpassing PEJ's 17.4% return. Over the past 52 weeks, the stock has soared 61.7%, compared to PEJ's 29.2% return over the same period.
Despite a few fluctuations, the stock has been trading above its 50-day and 200-day moving averages since last year.
Despite reporting weaker-than-expected Q2 2025 EPS of $1.17 on Aug. 6, Shares of TKO rose 3.3% the next day as revenue beat forecasts at $1.31 billion, up 10% year-over-year, with strong growth at WWE and UFC. Net income surged to $273.1 million, while adjusted EBITDA jumped 75% to $526.5 million, with margins improving to 40%.
Investor optimism was further boosted by TKO raising its full-year guidance and announcing a landmark five-year deal with ESPN to stream WWE premium live events.
In comparison, rival Live Nation Entertainment, Inc. (LYV) has lagged behind TKO stock. LYV stock has increased 25.3% on a YTD basis and 51.7% over the past 52 weeks.
Due to the stock's outperformance relative to its industry peers, analysts are bullish about its prospects. TKO stock has a consensus rating of “Strong Buy” from the 21 analysts covering it, and the mean price target of $211.29 is a premium of 8.4% to current levels.
