Sphere Entertainment Shares Sink Nearly 14% After Craig-Hallum Downgrade

Sphere Entertainment (NYSE: SPHR) shares fell nearly 14% on Monday after Craig-Hallum downgraded the stock. The stock closed at $110.83, its lowest finish since late March.

Analyst Ryan Sigdahl cut his rating to Hold from Buy and lowered his price target to $132 from $170. In the note, Sigdahl pointed to flat demand for The Wizard of Oz at Sphere. The selloff left the stock about 39% below its 52-week high of $181.63. Sphere Entertainment operates Sphere, the Las Vegas venue that hosts the show.

Downgrade and Trading

Craig-Hallum issued the downgrade on Oct. 5. Recent data show the updated film "has not meaningfully increased demand," Sigdahl wrote, according to Stocktwits. He also plans to lower his estimates, Stocktwits reported.

The stock opened near $128 and slid through the session. Shares ended down $17.45 at $110.83, according to Seeking Alpha. As of Monday morning, the stock was down about 18% over the past week and about 31% over three months, Investing.com reported. Even as shares fell, retail sentiment on Stocktwits climbed to the platform's most bullish reading, the site reported. Other analysts have been more upbeat. Guggenheim raised its price target to $208 in early September, according to Benzinga.

Second-Quarter Sales Topped $400 Million

In its second-quarter report, Sphere Entertainment said The Wizard of Oz at Sphere had passed $400 million in ticket sales.

The show, which opened Aug. 28, 2025, had sold more than 3 million tickets by mid-June. Revenue in the Sphere segment rose 29% to $226.4 million in the quarter. The segment's operating loss narrowed 17% to $69.6 million.

In the company's first-quarter release, Executive Chairman and CEO James Dolan said, "Today's results demonstrate our continued success proving out Sphere's business model." Both reports predate the downgrade, and neither includes third-quarter ticketing data.

Earnings Expected Around Nov. 3

Sphere Entertainment is expected to report third-quarter results around Nov. 3, according to Benzinga. Analysts expect a loss of $1.33 per share on revenue of $288.1 million. That compares with a loss of $2.80 per share a year earlier.

Looking further out, a Sphere experience based on The Rocky Horror Picture Show is expected to open in 2027. Sphere is also advancing plans for a venue at National Harbor, Maryland. Benzinga noted that the shares were trading well below their 20-day and 50-day moving averages. Investors will get their first look at third-quarter ticketing for The Wizard of Oz when the company reports.