Why Cinemark Holding Stock Fell as Much as 10% today
Shares of movie theater operator Cinemark Holdings (NYSE: CNK) fell just shy of 10% at one point today. The big story, however, didn't specifically apply to Cinemark but really to the broader health of the movie theater industry. And this weekend revealed that the news isn't good.
Long holiday weekends have historically been very good for movie chains. People are often looking for something fun to do, and movie production companies generally try to accommodate them by releasing blockbuster movies. For example, in 2019 the Thanksgiving weekend saw a box office pull of $262 million driven by Disney's Frozen 2. According to industry watchers, the same holiday weekend in 2020 had a box office of just $17 million or so, driven largely by Universal's second installment of The Croods, which chimed in with revenues of roughly $14 million.
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Source Fool.com
