On July 26, the Paris Olympic Games kicked off, and global sports enthusiasm burst out. Paris, known for its romance, attracted the attention of people all over the world. At the same time, the popularity of concept stocks related to the Paris Games has also risen rapidly in the capital market. So which stocks can investors pay attention to specifically?
SenseTime
SenseTime is an artificial intelligence software company dedicated to original technology research and promoting artificial intelligence into the industrialization stage of development. Its business covers four major sectors: smart business, smart city, smart life, and smart car. It currently has offices in more than 20 cities and more than 10 countries around the world.
The Paris Olympics focuses on the combination of sports and AR technology. SenseTime has created daily new large-scale models and applications to inject technological power into the Paris Olympics. SenseTime's AI smart basketball products will participate in the entire Chinese national basketball team's tournament journey, providing sports data analysis and competitive strategy optimization support. By constructing a 3D model of the field and a 3D motion capture algorithm, this product can analyze each athlete's movement status and basketball movement trajectory in real time, helping to improve athlete training efficiency while providing a scientific basis for competitive strategies.
In addition, SenseTime’s smart event broadcast technology will be used to broadcast the entire event of table tennis and archery, providing audiences with an immersive viewing experience. SenseTime has cooperated with Shanghai Oriental Media Technology Co., Ltd. (SMT), a subsidiary of Shanghai Radio and Television Station, to develop an InnoMotion event broadcasting solution. The solution can use SenseTime's 3D non-sensory motion capture technology to achieve multi-person, large-scale broadcasting without the need for wearable devices. , Multi-angle scene coverage, and real-time acquisition of spatial motion posture information. Especially for large and complex sports event scenes, it can accurately capture and analyze high-speed small targets such as table tennis balls and arrows in real time.
The recent performance of SenseTime's stocks has been unsatisfactory, with the overall downward trend and in a stage of continuous adjustment. The stock is currently quoted at 1.18. However, most analysts rate SenseTime's stock price at more than 1.5, and more than 80% of analysts recommend buying.
Source: uSMART SG
Louis Vuitton
The Paris Olympics attracted a total of 79 Olympic sponsors, with total sponsorship revenue expected to reach US$1.3 billion. Among them, Louis Vuitton (LVMH), the world's largest luxury goods group, provided a high-level sponsorship of 150 million euros for the Paris Olympics and made a splash at the opening ceremony.
In the TV footage of the opening ceremony, LVMH’s brands appeared in close-up shots many times. For example, the torch is stored in LV's suitcase, the Olympic medals are designed by Chaumet, and hundreds of volunteers' outfits are contracted by LV. In addition, the French team's dresses are designed and produced by Berluti, a men's clothing brand owned by the group.
However, LVMH Group is experiencing a loss of wealth and a decline in retail sales. It announced its results for the first half of 2024. Data showed that its sales revenue fell 1% year-on-year to 41.7 billion euros, which was less than the 42.2 billion euros expected by analysts. Operating profit fell 8% to 10.7 billion euros, and net profit fell 14%. % to 7.3 billion euros.
LV seems to be losing a large number of Chinese customers. Although it usually does not announce sales in the Chinese market, the latest data shows that LVMH's sales in the Asian market (excluding Japan) fell significantly in the second quarter. At the same time, other regions such as the United States, Japan and Europe are showing growth.
Source: uSMART SG
Visa
As a long-term global partner and exclusive payment technology provider of the Olympic Games, Visa once again demonstrated its leadership in the field of financial payments at the Paris Olympics. It is worth mentioning that it cooperated with Chase Bank, a subsidiary of JPMorgan Chase, to design a floating lounge on the banks of the Seine specially customized for high-end credit card users.
This innovative move not only provides cardholders with an unprecedented premium experience, but also successfully attracted the attention of a large number of potential customers and applied for its credit card product with an annual fee of up to US$550 through the "Paris Privilege" campaign that was widely spread on social media. , further enhancing the brand’s influence and market penetration.
Recently, Visa's stock price has rebounded and is now quoted at $259.46.
Source: uSMART SG
Which industries will not benefit from the "Olympic concept"?
Traditionally, the Olympic Games will generally directly benefit the tourism, aviation and hotel industries. However, due to the strategy of deeply integrating the Paris Olympic Games into the city, it has caused international tourists to worry about traffic congestion and rising prices, thus weakening their enthusiasm for watching the games. . According to the Paris City Tourism Department, although the total number of tourists is expected to reach 11.3 million, international tourists only account for 10% of them.
This trend has a direct impact on the aviation industry. Air France Group expects that its June to August financial quarter will face a revenue loss of 160 to 180 million euros due to the impact of tourists actively adjusting their itineraries and reducing trips to Paris. Delta Air Lines in the United States also expressed similar concerns, believing that "tourists avoiding Paris" may cause the company to suffer losses of up to 100 million US dollars.
STR data shows that the revenue per room of high-end Paris hotels from July to August is expected to increase by 45% year-on-year, but the occupancy rate is not optimistic. According to predictions by global travel data provider Costa, hotel occupancy rates during the Paris Olympics may only reach 80%, far lower than the 90% in London in 2012 and the 94% in Rio in 2016, highlighting the enthusiasm of international tourists for the Paris Olympics. downturn.
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