Better Buy: Disney vs. AMC
The COVID-19 pandemic turned the entertainment industry upside down. Media giant Walt Disney (NYSE: DIS) and movie theater operator AMC Entertainment Holdings (NYSE: AMC) were forced to close down their main attractions for several months and things just weren't the same when the theme parks and movie theaters were allowed to open their doors again. One of these fallen entertainment giants is poised to make a full recovery. The other is likely to file for bankruptcy before the health crisis is over.
Make no mistake: The pandemic is really painful for Disney and its investors. The theme parks are operating under strict social distancing guidelines, sparsely populated, and unprofitable under these conditions. The same goes for Disney's cruise line, resorts, and hotels. ESPN is showing live sports again but every professional league is prone to sudden cancellations when athletes turn out to have COVID-19.
As for the filmed entertainment side of the house, Disney has found the traditional movie theaters to be an ineffective method of content distribution. The House of Mouse pushed back several long-awaited titles into the 2021 season, hoping for a more hospitable business environment as COVID-19 vaccines become widely available.
Source Fool.com
