DIS & AMC Stock Down As Disney Drops Digital Details
On Tuesday, The Walt Disney Company changed up its strategy around the release of its tentpole features for the remainder of 2021.
Chief among the details were those about the debuts of Black Widow and Cruella.
Our own Melissa Roden dropped the deets on that important story:
BREAKING NEWS: Black Widow and Cruella ALSO Coming To Disney+
Then, from an investing perspective, a couple of things happened.
AMC Stock Drops
Firstly, AMC stock dropped.
Joe Tenebruso of The Motley Fool explained:
Shares of AMC Entertainment (NYSE:AMC) plunged nearly 15% Tuesday after Walt Disney (NYSE:DIS) said it would make two of its most-awaited movies available for viewing on its streaming service the same day they begin showing in theaters… For a fee of $29.99, Disney+ subscribers will be able to watch Marvel’s latest superhero blockbuster, Black Widow, starring Scarlett Johansson, on July 9 — the same day it debuts in theaters. Disney will use a similar launch approach with Cruella, a live-action film based on the villain from its classic hit, 101 Dalmatians.
Tenebruso added:
The news came as a punch to the gut for AMC and its shareholders. The struggling theater chain recently announced that 99% of its U.S. locations would reopen by March 26. Yet with Disney making it easy for movie fans to watch its biggest films in the comfort and safety of their own homes during the COVID-19 pandemic, AMC might struggle to fill seats.
Secondly, DIS stock dropped, too.
Disney Drops Too
“WHY?” is the question, and one that might be better answered in the coming days.
But as of yesterday, The Motley Fool’s Eric Volkman provided a counterpoint to any worry from the DIS crowd.
Is simultaneous releasing the future of the movie business? If Walt Disney‘s (NYSE:DIS) latest moves are any indication, the answer is yes... For Disney shareholders, the news is more encouraging. As it did with the previous Disney+ big-budget movie debuts of Mulan and Raya and the Last Dragon, the company will charge a steep price ($30) for viewers to screen Black Widow through the service. Given the fervency of MCU devotees, there are sure to be a lot of takers on opening weekend, and the company will make a pretty penny.
That said, Volkman also acknowledged that DIS dropped 2.1% on Tuesday.
Stock Market Indicators Down
However, overall stock indicators were down across the board.
According to CNBC, “Investors grew concerned about Covid reopening plans as cases ticked higher in many U.S. states, despite vaccinations. Germany and France are among the European nations tightening restrictions again as a new wave of infections sweeps a continent that’s seen a sluggish vaccine rollout.”
Stay tuned DISbelievers! I know my 11.5 shares and I will be watching the market today, with interest (pun intended).