Las Vegas Sphere Stock Analysis

I went to Vegas two weeks ago for my day job, and every time I tell someone about it 9/10 times, the next sentence they say is, "did you go to the Sphere". Followed by them telling me how badly they want to go or how they went and it was a transformational experience.

When Flankers hear things like that on the street, we take a look at the business further.

I went to a show at the Sphere and it was really, really cool.

Now it's time to look at the business, to see if it's a buy.

## History of the Sphere

The Sphere was spun off from Madison Square Garden Entertainment in 2023.

Interestingly, the CEO of Madison Square Garden (James Dolan) is also CEO at Sphere (more on that in later research-- he has a bit of a troubled past).

Their plan: build their proof of concept in Vegas, and then take that design and build more Spheres in other parts of the world.

In December 2023, Sphere was looking to build a new venue to be used for K-pop concerts in Hanam, South Korea, but discussions stalled for South Korea and also Saudi Arabia. Sphere then held talks with developers in United Arab Emirates to develop a second Sphere in Abu Dhabi. In October 2024, Sphere Entertainment confirmed that it would build a second Sphere in Abu Dhabi which would be similar to their property in Las Vegas. In July 2025, Sphere Entertainment finalized a deal with the Abu Dhabi Department of Culture and Tourism to develop the venue in Abu Dhabi.

## High level Stock Analysis

The Sphere is not yet profitable.

Despite this, the stock seems to be in value territory (if the growth engines are going to start moving a flywheel)

P/S Ratio is a modest 1.32.

Price-to-book is 0.66.

Stock price is up 13% over the past year

Revenue is all over the place, but the 5-year CAGR has trended down (surprisingly) 5%, but it's up 7% in the past year

I'm not sure how they had revenue before the Las Vegas Sphere was completed being built. However, when I get to the first step in the Flank methodology ("How do they make money?") I'm sure that will reveal itself.

Net income is also negative for the past year, but had a positive 2023.

The last red flag I noticed after my first look is that they have diluted their shares a bit more than I'm comfortable with. Shares outstanding is up 8% over the past 5-years... the opposite of what I want to see.

So, while there are a few red flags (Net Income, Leadership, and Share Dilution), the business also does have a lot of green flags.

I'll be studying this one more, because it's a fun business and my curiosity is piqued.