Why Regal Entertainment Group Stock Fell 22% in August
Shares of Regal Entertainment Group (NYSE: RGC) fell 22.3% in August 2017, according to data from S&P Global Market Intelligence. The plunge started when rival movie theater chain AMC (NYSE: AMC) reported terrible preliminary results. When a consortium of Hollywood studios teamed up to launch a new premium video streaming service without the thumbs-up from Regal and AMC, the stock took another haircut.
The movie industry as a whole had a weak summer with fewer blockbusters than expected and smaller box office totals for the handful of winning titles. Both AMC and Regal are supporting their top-line revenue streams with rising ticket prices and expanded concession menus, but foot traffic to movie theaters is undeniably falling.
On that note, the impending launch of a new streaming video service with the backing of several major movie studios looks like a fresh dagger in Regal's bleeding back.
Source: Fool.com