One analyst's reasons to be bullish on box office stocks

Box office stocks are showing signs of recovery despite not having a ton of new content. Chad Beynon, Macquarie senior analyst of gaming, lodging, and leisure, joins Asking for a Trend to discuss his outlook on box office stocks.

Beynon notes the April/May period was "the end of a lack of product," attributing this to the 2023 Hollywood strikes. While films like "Despicable Me 4" and "Inside Out 2" have successfully drawn audiences back to theaters, the lingering effects of the prolonged strikes in Hollywood are expected to impact EBITDA and revenues in the second quarter.

However, Beynon remains optimistic about these stocks, describing them as "a back-half weighted story." He points to the Thanksgiving/Christmas season in the fourth quarter as a potential turning point. With highly anticipated releases such as "Moana 2," "Gladiator II," "Wicked," and "Mufasa: The Lion King," Beynon foresees "a lot broader content" that could drive a strong year-end performance for these stocks.

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Angel Smith