As the world remains glued to the ongoing Olympic Games in Paris, France, several brands are strategically positioning themselves to capitalize on this event’s global exposure.
Notably, companies from different sectors have already unveiled themselves as sponsors of the games. This exposure will likely drive substantial consumer engagement, an aspect that can potentially impact their respective stocks. Here are three stocks with the potential to benefit from the global event:
LVMH Moet Hennessy Louis Vuitton SE (OTCPK: LVMHF)
For the first time, luxury conglomerate LVMH (OTCPK: LVMHF) is investing significantly in the Olympics. The company’s involvement includes designing the Olympic torch and medals, sponsoring athletes like gymnast Mélanie de Jesus dos Santos, and showcasing its brands during the Opening Ceremony.
Picks for you
LVMH’s extensive involvement will potentially elevate its brand visibility among a global audience. This exposure can attract new customers and reinforce its luxury image, likely boosting sales across its various brands. The association with the Olympics can also enhance LVMH’s appeal to aspirational luxury consumers, driving long-term growth.
A review of the luxury company’s stock shows it has traded in the red across 2024, currently trading at $654, down almost 10% for the year.
Delta Air Lines (NYSE: DAL)
Delta Air Lines (NYSE: DAL), another prominent sponsor, is poised to benefit from its extensive involvement in the Paris Olympics. As the official airline of the games, Delta is likely to see a surge in international travel and increased brand visibility.
The Olympics will likely lead to a substantial increase in passenger traffic, boosting Delta’s revenue from ticket sales and ancillary services. The heightened visibility and premium service offerings showcased during the Games can also enhance customer loyalty and attract new customers, strengthening the airline’s market position.
Throughout 2024, DAL has recorded positive momentum, with the stock trading at $43 at the time of reporting. On a year-to-date basis, the stock is up almost 8%.
Visa (NYSE: V)
Visa (NYSE: V), a long-standing sponsor of the Olympics, continues to use the games as a platform to showcase its payment technology. Amid the Paris Olympics, Visa is highlighting its contactless payment solutions and digital wallets, catering to the needs of a global audience.
The widespread use of Visa’s payment solutions during the Olympics will likely increase transaction volumes and demonstrate to a global audience the convenience and security of its technologies.
This can lead to greater adoption of Visa’s digital payment solutions, driving growth in transaction processing revenue and reinforcing its leadership in the financial services sector.
By press time, Visa stock was trading at $260 with year-to-date gains of almost 1%.
Overall, as the Paris Olympic Games continue to capture the world’s attention, the strategic sponsorships by LVMH, Delta Air Lines, and Visa highlight how brands can leverage such a global event to enhance their visibility. These companies’ investments position them well to benefit from the heightened exposure, potentially positively impacting their stock performance.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
