“The rise of home entertainment significantly cuts into the movie theater profit margins. Hollywood movies used to have a monopoly on production value, but ever since The Sopranos, more and more television series are competing on production quality. Home entertainment systems have also vastly improved in quality particularly with audio.
AMC and other movie theaters (e.g. CNK, IMAX) will have to innovate in order to justify higher stock valuations. Despite home entertainment, movie theaters remain a common date venue and leisure activity for minors. Perhaps AMC can use its elevated valuation to raise capital in order to develop new ancillary services. Another meme stock, GameStop (GME), is well-positioned to reinvest in innovation. Indeed, there may be more opportunities for innovation in digital entertainment which competes for the same consumer spending as movie theaters like AMC.”
Investment advice offered through Magnifina, LLC, a Registered Investment Adviser. SEC# 801-117932. This website and information are provided for guidance and information purposes only and are not intended to provide investment, tax, or legal advice. No historical or future performance claims are made. Please consult a qualified professional before making decisions about your financial situation or otherwise using any specific information contained herein.
Any linked materials are provided strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are viewing.
Any service described as “free” or “complimentary” means there is no monetary or financial cost to you. However, these offers may require you to be in contact with us, provide certain information, or participate in meetings or consultations. We reserve the right to deny, discontinue, or limit access to any offer at our sole discretion.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
25 Broadway, 10th Floor
New York, NY 10004
Phone: (800) 732-0818