It’s more than just a post-pandemic re-opening story. The spark of exciting coming into the entertainment space isn’t just about people being willing to gather in close quarters again, though that is playing a central role. It’s about the restarting of an entire ecosystem.
That has important consequences for all of the moving parts tied to that ecosystem. Life has been breathed back into the supply chain of entertainment content creation and distribution because everything works backwards from the concept of a crowd.
Even streaming online-only content will improve because it lives in that ecosystem by virtue of the fact that its key players also derive significant cash flows from some sort of crowded venue.
Investment capital is returning to the entertainment space, which means top players will be ready to pool talent around important projects, and marketing dollars will be spent on recruiting audiences. The machine has come back to life, as evidenced by the massive numbers – already over a half-billion in box office take – being put up by F9, the ninth entry in the blockbuster Fast & Furious franchise.
That explosion in cash will drive an explosion in follow-on investment, bringing all corners of the entertainment industry back up to full speed.
This shift in mode has major implications for stocks in the space, including AMC Entertainment Holdings Inc (NYSE:AMC), Walt Disney Co (NYSE:DIS), Dolphin Entertainment Inc (NASDAQ:DLPN), All for One Media Corp (OTC US:AFOM), DISCOVERY COMMUNICATIONS INC. (NASDAQ:DISCA), and Imax Corp (NYSE:IMAX).
We take a closer look at some of these names with interesting recent catalysts below.
AMC Entertainment Holdings Inc (NYSE:AMC) has been a focal stock over recent months as a plaything of Reddit traders seeking blood from institutional shorts. But it’s also an entertainment company that suddenly has access to major capital for major investments in fresh expansion.
The company bills itself as a name that engages in the theatrical exhibition business through its subsidiaries. It operates through the United States Markets and International Markets segments. Its US segment involves in the activity in the U.S. specifically in New York, Los Angeles, Chicago, Atlanta, and Washington, D.C.
AMC Entertainment Holdings Inc (NYSE:AMC) most recently announced that audiences came roaring back to AMC movie theatres in post-reopening record numbers this weekend. AMC credits the opening of F9: THE FAST SAGA, as well as other movies also currently playing at its theatres, to AMC seeing its busiest weekend attendance numbers in more than a year. Some 2 million people watched movies at AMC‘s United States theatre locations between Thursday, June 24 and Sunday, June 27. These are the biggest numbers recorded by AMC in the U.S. since closing its theaters in March of 2020 due to the coronavirus pandemic.
Adam Aron, CEO & President of AMC Theatres, said, “The big screen is back! Some 2 million people came out to enjoy movies at an AMC theatre in the U.S. over the past four days. And counting our international theatres, too, we had more than 2.5 million guests. At AMC, we salute our friends and partners at Universal Pictures following their post-reopening record-setting performance of F9: THE FAST SAGA.”
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action AMC shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -11% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -6%.
AMC Entertainment Holdings Inc (NYSE:AMC) pulled in sales of $148.3M in its last reported quarterly financials, representing top line growth of 0%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($842.1M against $1.6B, respectively).
Dolphin Entertainment Inc (NASDAQ:DLPN) engages in the provision of entertainment marketing and content development. It operates through the following Entertainment Publicity and Marketing ; and Content Production segments.
The Entertainment Publicity and Marketing segment comprises of 42West, The Door, Viewpoint, and Shore Fire Media. The Content Production segment consists of Dolphin Entertainment and Dolphin Films.
Dolphin Entertainment Inc (NASDAQ:DLPN) recently announced that it is set to join the Russell Microcap® Index at the conclusion of the 2021 Russell Index’s annual reconstitution effect after the US market opens on June 28, according to a preliminary list of additions posted June 4.
“Inclusion in this index reflects our recent growth and business achievements and presents a new opportunity for us to gain broader visibility within the investment community, particularly those who use the Russell indexes to benchmark their portfolios,” stated Dolphin Entertainment CEO, Bill O’Dowd. “We look forward to sharing our story and plans for future growth with a wider, more diverse audience of potential investors.”
The stock has suffered a bit of late, with shares of DLPN taking a hit in recent action, down about -9% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -3%.
Dolphin Entertainment Inc (NASDAQ:DLPN) pulled in sales of $7.2M in its last reported quarterly financials, representing top line growth of 0%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($7.8M against $16.9M, respectively).
All for One Media Corp (OTCMKTS:AFOM) is another small entertainment and media player with some very interesting recent catalysts and an extremely compelling big-picture vision attacking the $260 billion US tween market.
AFOM recently launched its first major project – a multifaceted media initiative around its “Drama Drama” franchise. The first piece of this project is a movie, aptly called Drama Drama. The movie stars five girls who are also the performers in a budding girl group, also called Drama Drama. The movie is out already and has seen rave reviews in tween publications.
All for One Media Corp (OTCMKTS:AFOM) also just announced late last week that Drama Drama, the movie, is now available on Amazon Prime and can be streamed for free over the leading SVOD platform by Amazon’s 200 million subscribers.
The release describes the movie as the quintessential teen “coming of age” musical dramedy about the nuances of the high school experience and tells the fictional back story of the girls in the musical group, Drama Drama. The movie has already been featured in J14, Girl’s World, In Touch, LifeStyle, Star, and Billboard Magazine, among other publications.
AFOM’s CEO, Brian Lukow stated, “We plan on releasing Drama Drama through several windows, and we are excited that so many Amazon Prime customers will now have access to the movie. We have received tremendous feedback so far. This is resonating with our target audience – the story, the girls, the songs, the choreography – and we look forward to watching these talented young ladies reach an entire generation of girls.”
The release goes on to note that, for those without an Amazon Prime account, Drama Drama will remain available for a rental fee of $4.95 across more than two dozen TVOD (Transactional Video on Demand) platforms. The Drama Drama soundtrack is already available on all major music streaming platforms, including Spotify and Apple Music. On August 1, Drama Drama is due to release the group’s first new single since the debut of the movie.
All for One Media Corp (OTCMKTS:AFOM) shares are powering higher over recent days as the world starts to take a look at a stock that seems to be coming out of nowhere over the past few weeks with a flurry of big catalysts following a long dormant period through the pandemic.
