While hordes of investors flock to the same artificial intelligence (AI) opportunities, a contrarian play is emerging on the other side of this megatrend.
As Disruption Investor and Disruption_X members can attest, betting on AI frontrunners has proven immensely profitable. With AI poised to be the defining technological shift of our era, AI-related stocks are well-positioned for continued gains in 2026.
However, an underappreciated investment angle lies in the activities that pull people away from their screens in an increasingly AI-driven, digital world. Venture capitalist Josh Wolfe astutely observes that scarcity breeds value. As such, live events, concerts, sports, and immersive entertainment are set to command a premium.
Spending on live entertainment as a share of the US economy has doubled since 1990, with the industry now generating roughly $100 billion annually.
The upward trajectory is what matters, and it points to a growing hunger for shared physical experiences as our lives become more digital.
The live event sector is shattering records year after year. Taylor Swift's Eras Tour amassed over $2 billion in ticket sales, claiming the title of highest-grossing concert tour in history. Broadway just logged its most lucrative season to date. The NFL drew nearly 19 million fans to games in the 2024-2025 season, enjoying its highest average attendance ever.
To capitalize on this yearning for in-person experiences, look no further than the Las Vegas Sphere — a modern marvel rising from the Nevada desert. At 350 feet tall and 500 feet wide, this luminous orb, wrapped in 1.2 million LED lights, appears as a glowing planet dropped into the heart of Las Vegas. Inside, it boasts the most immersive entertainment venue ever constructed.
The interior screen envelops the entire audience, with sound moving through the space like a tangible entity. The visuals create the illusion of standing inside the film itself. During U2's residency, the Sphere's walls transformed into soaring desert cliffs and swirling galaxies that appeared to extend miles above the crowd. The band seemed diminutive against the sheer scale of the spectacle.
U2's 40-show opening stint at the Sphere drew over 650,000 fans, selling out nearly every night. A UFC event also packed the venue with around 16,000 spectators, demonstrating the Sphere's versatility in hosting both concerts and sporting events. Between bouts, the Sphere completely metamorphosed the arena, transporting the audience from towering Mayan temples to roaring volcanic landscapes and neon-drenched deserts.
The Sphere is a veritable cash cow. Despite initial skepticism, the numbers paint a compelling picture. In its inaugural year, the Sphere has welcomed 1.3 million visitors, with its parent company, Sphere Entertainment Co. (SPHR:NYSE), generating over $1 billion in revenue. The immersive documentary "Postcard from Earth" alone has pulled in about $400 million, while a Sphere adaptation of "The Wizard of Oz" has sold roughly $300 million in tickets. Demand for the upcoming Metallica residency has been so fervent that the band extended their original eight-show commitment to 24 performances.
These are not mere concerts or movies, but entirely novel entertainment formats that can only exist within the Sphere's walls — experiences that simply cannot be replicated on a phone screen.
Sphere Entertainment is already planning additional orbs worldwide, with projects underway in Abu Dhabi and London. If successful, the company could eventually establish a global network of Sphere venues — akin to an IMAX for live entertainment, but on a grander scale and with greater profit potential. Each new Sphere becomes a destination in its own right, enabling artists to craft shows tailored to the venue and films produced exclusively for the format. Sports leagues can stage events that feel impossible anywhere else. This creates a potent ecosystem where the venue itself is the star attraction.
When I first recommended buying SPHR in 2023, the stock proceeded to triple in value. And the story is still in its early chapters. With the inaugural Sphere proving the concept's viability, the next phase is all about scaling. If the Sphere emerges as the global standard for immersive live entertainment, today's valuation may seem quaint in hindsight.
I believe SPHR remains a compelling buy at current levels. In a world increasingly dominated by AI and digital experiences, betting on the other side of this disruption — the scarcity and value of shared physical experiences — is a savvy and underappreciated investment strategy. The Sphere's early success suggests this contrarian play may have a long runway ahead.
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