With the 2024 Summer Olympic Games starting in Paris on 26 July, it may not be too late to consider how the Olympics will affect the stock market and which stocks are likely to feel the impact and thus be good investments during the games.

Impact on the Stock Market

Sector Performance:

Companies involved in sectors such as sports apparel, broadcasting, hospitality, tourism, and infrastructure development may see increased investor interest and stock price movements during the Olympics.

Advertising and Sponsorship:

Companies that are official sponsors or advertisers of the Olympics may experience heightened brand visibility and potential sales boosts, which could positively impact their stock prices.

Tourism and Hospitality:

Host cities and countries often experience an influx of tourists during the Olympics, benefiting airlines, hotels, restaurants, and other tourism-related businesses, potentially leading to increased stock performance in these sectors.

Infrastructure and Construction:

Investments in infrastructure projects, including sports facilities, transportation, and urban development, can boost the stock prices of companies involved in construction and engineering.

Market Sentiment:

Major sporting events like the Olympics can influence market sentiment, with positive news and a sense of national pride potentially contributing to a more optimistic market outlook.

Global Economic Impact:

The Olympics can have broader economic effects on the host country’s economy and global markets, especially if there are changes in consumer spending, trade, and investment patterns.

Short-Term Volatility:

During the Olympics, there may be short-term fluctuations in the stock market due to increased trading activity, investor sentiment, and news related to the event.

Media and Broadcasting:

Media companies that broadcast the Olympics can see increased viewership and advertising revenue, which could positively impact their stock performance.

Stocks Feeling the Olympics’ Impact

Alibaba

Alibaba, a major Chinese multinational technology company, has been a TOP (The Olympic Partner) sponsor of the Olympic Games since 2017. This partnership includes providing cloud services, e-commerce platforms, and technological support for the games, thus optimizing the experience for athletes and fans worldwide.

Visa

Visa, a global payments technology company, has a long-standing relationship with the Olympics, being one of the key sponsors of the Olympic Games. Visa has been a Worldwide Olympic Partner since 1986, providing payment solutions and services for athletes, fans, and attendees at the Olympic Games.

Airbnb

According to Airbnb, the online accommodation marketplace, approximately 150,000 homes in Paris have been reserved for the Summer Olympics, with visitors expected to contribute more than one billion dollars to the local economy. Bookings for accommodations in the Paris region during the games have surged to over five times (400%) the levels recorded at the same time last year, as of March 31st.

Nike

Footwear and athletic apparel giant Nike has prepared for a surge in business surrounding the Olympics. Since 2004, shares typically see a 1.4% increase on the first day of the Olympics, transforming the event into a significant advertising opportunity for the company as athletes proudly display their track suits and shoes featuring the iconic swoosh logo.