Sorry, Vegas… Sphere Entertainment Soars 12% with Abu Dhabi’s Massive LED Sphere

Sorry, Vegas—Abu Dhabi’s getting its own Sphere, so now folks on the other side of the world can join the club of people trying not to get distracted by a giant glowing eyeball while they drive. Naturally, investors are loving the idea. Sphere Entertainment’s stock just shot up 12% this past week, because apparently, the world can’t get enough of these massive, LED-covered orbs.

It’s all thanks to the announcement that the Middle East is going to get the second giant orb of entertainment magic. Yes, the same 366-foot-tall, 580,000-square-foot spectacle that’s turned the Las Vegas skyline into a next-level billboard is about to pop up in the UAE.

If you don’t already know, this isn’t just any concert venue we’re talking about—it’s 366 feet of “holy crap, look at that thing.” In Vegas, the Sphere has turned into a giant billboard (at one point, it was literally a 366-foot-tall Mcdonald's Big Mac) while hosting massive events, like UFC 306, which brought in a record-breaking $22 million in one night. Between concerts, sporting events, and skyline-sized ads, the Sphere is reminding everyone that when it comes to over-the-top entertainment, bigger is indeed better.

So, what’s the deal with Abu Dhabi? Well, UAE capital has been on a mission to make itself stand out in the region. They’ve already got a Louvre museum, a Formula 1 race, and a Frank Gehry-designed Guggenheim opening next year. But now, they want their own version of the Las Vegas Sphere to draw in even more tourists. And they’ve set some lofty goals, they had 24 million tourists last year, and they’re gunning for 39 million by 2030. And what better way to hit that number than slapping a giant glowing ball in the middle of the city?

Here’s the cool part though: Abu Dhabi’s government is paying to build the whole thing, and they’ll also cough up recurring fees to Sphere Entertainment to use their content, tech, and IP. So, Sphere’s basically collecting checks while Abu Dhabi foots the construction bill. 

This move couldn’t have come at a better time for Sphere Entertainment (SPHR), because let’s be real, after London shut down their plans for a second Sphere due to light pollution concerns, things were looking scary. The Vegas Sphere is cool and all, but when you’re dropping $2.3 billion on a massive dome, investors start asking questions about scalability and profitability.

But now? Wolfe Research estimates that this new Abu Dhabi Sphere could bump up Sphere Entertainment’s value by $700 million. And remember the best part: unlike the Vegas Sphere, where Sphere is on the hook for all those sky-high production costs, Abu Dhabi is paying for the whole thing. Sphere just gets to sit back and collect a franchise fee, while also making bank on the content they’ll provide for the venue.

Meanwhile, Sphere Entertainment’s CEO, James Dolan, has dreams of building a “global network of venues.” So far, Abu Dhabi is just the first step in that plan. But Sphere’s also been trademarking its name in places like Japan, Oman, and Qatar, so don’t be surprised if we start seeing these orbs popping up all over the world.

Now there’s no word yet on when Abu Dhabi’s Sphere will officially open or how much it’s going to cost. But if it’s anything like the Vegas version, expect it to be a spectacle that people will be talking about for years. Investors are already on board, with shares of Sphere Entertainment climbing fast, and it looks like this new venture is set to pay off big time.

Shares of Sphere Entertainment are up 43% so far this year–thanks in large part to news of revenue doubling over the last quarter. The only question left: What ridiculous, larger-than-life ad will they slap on the outside first? My money’s on a 366-foot-tall falafel wrap.

P.S. Can someone say 203% winner?! That’s right, Wednesday morning’s alert on $QNRX went exploded and premium subscribers caught wind of this monster at $0.51 before it RIPPED to $1.56 in less than 4 hours! Click here now to make sure you’re in on the next one.

Stock.News has positions in Mcdonald’s, Formula 1, UFC, and Sphere Entertainment as mentioned in the article.