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Zacks Market Edge Highlights: Netflix, Amazon, AMC Entertainment and Cinemark Holdings
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For Immediate Release
Chicago, IL – April 26, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/300553/moviepass-disruptive-technology-or-destined-to-fail)
MoviePass: Disruptive Technology or Destined to Fail?
Welcome to Episode #128 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Ryan McQueeney, Zacks Associate Stock Strategist, to discuss what is going on in the movie theater industry.
Is MoviePass Too Successful?
In the summer of 2017, MoviePass, which allows movie fans to subscribe to unlimited screenings every month for a subscription fee, dropped its price from $50 to as low as $9.99 a month.
Movie fans rushed to subscribe and MoviePass’ parent, Helios and Matheson Analytics, was hoping that big subscriber numbers could entice the movie theater chains to share proceeds from increased concession sales and that the data from subscribers could be monetized as well.
But recently, Helios and Matheson reported an overall $150.8 million net loss for 2017, which was mostly due to keeping MoviePass up and running. It spends more to keep the subscriber than the revenue it gets from the subscriber.
In other words, too many subscribers are seeing too many movies. It is too successful.
MoviePass has announced a new subscriber plan which isn’t quite as generous as previously. Now, subscribers will pay $10 for 4 movies a month, instead of unlimited.
This is still a bargain compared to current movie prices.
Impact on the Movie Chains
Not surprisingly, there have been some growing pains between MoviePass and the theater chains even though MoviePass is, presumably, bringing in more patrons who will eat and drink in the theaters.
But the movie chains are already facing performance pressures from Netflix (NFLX - Free Report) and Amazon Prime Video (AMZN - Free Report) .
Will the theater go the way of the video store thanks to the streaming options available right on your couch?
AMC Entertainment (AMC - Free Report) saw a loss of $0.89 last year. The 2018 Zacks Consensus Estimate is calling for a loss of $0.01.
For Cinemark Holdings CMK, the earnings outlook looks a little bit better as it’s expected to grow earning in 2018 by 2.7% to $2.32.
Investing in Disruptive Technologies
Even Helios and Matheson acknowledged that its auditors expressed “substantial doubt” about its ability to continue on as a going concern.
And the theater chains may win this round against MoviePass, but its sheer popularity has opened the door to other disruptors to walk on through.
Should an investor even look for opportunities in the theater industry?
Find out the answer to this and more on this week’s podcast.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: Netflix, Amazon, AMC Entertainment and Cinemark Holdings
For Immediate Release
Chicago, IL – April 26, 2018 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/300553/moviepass-disruptive-technology-or-destined-to-fail)
MoviePass: Disruptive Technology or Destined to Fail?
Welcome to Episode #128 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Ryan McQueeney, Zacks Associate Stock Strategist, to discuss what is going on in the movie theater industry.
Is MoviePass Too Successful?
In the summer of 2017, MoviePass, which allows movie fans to subscribe to unlimited screenings every month for a subscription fee, dropped its price from $50 to as low as $9.99 a month.
Movie fans rushed to subscribe and MoviePass’ parent, Helios and Matheson Analytics, was hoping that big subscriber numbers could entice the movie theater chains to share proceeds from increased concession sales and that the data from subscribers could be monetized as well.
But recently, Helios and Matheson reported an overall $150.8 million net loss for 2017, which was mostly due to keeping MoviePass up and running. It spends more to keep the subscriber than the revenue it gets from the subscriber.
In other words, too many subscribers are seeing too many movies. It is too successful.
MoviePass has announced a new subscriber plan which isn’t quite as generous as previously. Now, subscribers will pay $10 for 4 movies a month, instead of unlimited.
This is still a bargain compared to current movie prices.
Impact on the Movie Chains
Not surprisingly, there have been some growing pains between MoviePass and the theater chains even though MoviePass is, presumably, bringing in more patrons who will eat and drink in the theaters.
But the movie chains are already facing performance pressures from Netflix (NFLX - Free Report) and Amazon Prime Video (AMZN - Free Report) .
Will the theater go the way of the video store thanks to the streaming options available right on your couch?
AMC Entertainment (AMC - Free Report) saw a loss of $0.89 last year. The 2018 Zacks Consensus Estimate is calling for a loss of $0.01.
For Cinemark Holdings CMK, the earnings outlook looks a little bit better as it’s expected to grow earning in 2018 by 2.7% to $2.32.
Investing in Disruptive Technologies
Even Helios and Matheson acknowledged that its auditors expressed “substantial doubt” about its ability to continue on as a going concern.
And the theater chains may win this round against MoviePass, but its sheer popularity has opened the door to other disruptors to walk on through.
Should an investor even look for opportunities in the theater industry?
Find out the answer to this and more on this week’s podcast.
[In full disclosure, Tracey owns shares of AMZN in her personal portfolio.]
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast. You can also catch her on Twitter at @TraceyRyniec.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.