Cinema Stocks PLUMMET after Cineworld Closes

After Cineworld announced they would be temporarily closing all of their UK and U.S. venues, which they operate through its Regal Cinemas subsidiary, their shares dropped more than 40%. Unfortunately they were not the only chain to see a fall. AMC Cinemas’ also saw its share drop roughly 11%. Cinemark fell nearly 13% and National Cinemedia fell 9%.

Investors were already concerned with what the Covid-19 pandemic would do to their stakes. But now, with theaters officially shuttering their doors for a longer-term it is apparent the future of cinema-going is bleak.

After roughly six months of closures or partial openings many chains hoped they would be back up and operational at more or less full capacity by the end of the Summer. Unfortunately things did not pan out as expected and the entertainment industry began to delay films further with most not releasing until late Q1 of 2021 or later.

It seems the biggest blow was that of the next James Bond film, ‘No Time to Die’ which was once again delayed to April 2021. This was the straw that broke the camels back for Cineworld and it could be a matter of time until we see AMC or Cinemark also explore temporary shut-downs.

Other films moved from 2020 to 2021 include Fast 9, Black Widow, The Kings Man and West Side Story.

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