'F9' Provides a Glimmer of Hope for AMC and Other Theater Chains, but Only a Glimmer
In typical Hollywood fashion, a hero has swooped in to save the nation's beleaguered movie theaters from certain doom. Universal's newest action flick, F9: The Fast Saga (the ninth installment of the Fast and Furious series), just gave theater chains a much-needed shot in the arm. As AMC Entertainment Holdings (NYSE: AMC) CEO Adam Aron put it, "The big screen is back! [...] At AMC, we salute our friends and partners at Universal Pictures following their post-reopening record-setting performance of F9: The Fast Saga." Presumably, rival theater chains Cinemark Holdings (NYSE: CNK) and Cineworld Group (OTC: CNNW.F) saw a similar business bump.
Is it hyperbole? Aron has something of a penchant for splashy talk. His optimism also ignores the possibility that consumers are ready to do anything that looks and feels like the pre-pandemic norm; F9 may have simply been the first opportunity to do so. There's no assurance this high interest in the actual theater experience will last. On balance, though, this is something the cinema side of the business can build on.
Of course, that doesn't necessarily mean movie theater stocks are all buys.
Source Fool.com
