A recent study has found that six nights of Taylor Swift concerts are worth more than the entire market value of WeWork. The Eras Tour, which is set to take place in Los Angeles County, is estimated to give a boost of $320 million to the county's gross domestic product (GDP). This surpasses WeWork's current market capitalization, which has plummeted by 97% in the past year.
The study suggests that Swift's shows in Los Angeles will create 3,300 jobs and increase local earnings by $160 million. It assumes that all six nights will be sold out at the 70,000-seat SoFi stadium, with an average ticket price of around $700. Additionally, it takes into account the average amount spent by concertgoers, the taxes paid by the concert organizers, and the indirect effects of money flowing through the local economy.
Swift's record-breaking tour has also caught the attention of the Federal Reserve, with the Philadelphia branch mentioning the tour in its Beige Book. One local in Philadelphia reported that July was the city's strongest month for hotel revenue since the start of the pandemic, largely due to an influx of Swift fans attending her concerts.
Meanwhile, WeWork's stock has been on a downward spiral, with its market value now below $320 million. The company recently warned that there is "significant doubt" about its ability to stay in business for more than a year unless its financial situation improves. However, its shares experienced a slight rally of more than 20% in early trading on Thursday.
In summary, the study highlights the economic impact of Taylor Swift's concerts, which are projected to generate significant revenue and job opportunities. On the other hand, WeWork's financial struggles continue to pose challenges for the company's future.