Netflix, AMC Brace for Omicron Impact (Entertainment Stock Showdown)

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COVID-19 changed the entertainment industry in 2020. And just as things seemed normal again, a variant of Omicron appeared.

No one wants another blockade, but some countries have already taken steps to prevent the spread of other variants.

This week Investing with Charles, Research analyst Matt Clark and I look back on entertainment during a pandemic.Also compare two entertainment stocks that are streaming giants Netflix Inc. (Nasdaq: NFLX). And the stubbornness of the theater AMC Entertainment Holdings Inc. (NYSE: AMC)., See which is the better purchase.

The highlights of the conversation with Matt are:

Omicron Spy Investor

mat: In addition to the earthquake in Peru (where Charles is now), another major problem that occurred last weekend was a new Omicron variant of the COVID-19 virus. It was found in South Africa (South Africa, Namibia, Mozambique) and is now spread throughout Europe such as the Netherlands, Belgium and Germany. At least at the time of this recording, there is nothing so far here in the United States. [Note: The U.S. just confirmed its first case of the omicron variant in California on Wednesday.]

It caused horror in the market on Friday after Thanksgiving on the shortened trading day. The major index plummeted by more than 2% in a day, making it the worst day of the year for the market.

But I think a bigger question remains here. With these variants coming out, it’s the holiday season. More and more family gatherings and such things are planned. And now, we have seen countries that have been closed again, such as Germany implementing a travel ban and closing some of the countries. Austria and the Czech Republic are doing the same.

This leads to today’s topic. Entertainment did not exist during the 2020 coronavirus pandemic.

Charles: There was no place to go.

mat: I didn’t have a place to go. Well, you were stuck at home.

We saw the rise of Netflix, Disney +, Hulu, and Amazon Prime. With these streaming services, we were able to enjoy entertainment without leaving the safety and comfort of our home.

And in 2021, something interesting will happen. AMC, Large theater chains not only here in the United States but around the world have become meme stocks, so they have surged on a large scale. A wave of small investors poured money into the beaten stock. I saw him jump hundreds of percent higher in no time.

AMC stock performance

So today I would like to compare stocks like AMC that are currently reopening the theater Netflix Inc. (Nasdaq: NFLX), This is included in the true Steady Eddie streaming service, which has been tried and errored.

Are you not entertained? !!

mat: I found a study done by Hub Entertainment Research in July 2021. It asked: How do people expect to see a movie next year?

IMG 001

This was after the new cases leveled off, people were vaccinated, and the pandemic subsided somewhat. The results are as follows.

  • Twenty-nine percent of respondents said they would still stream movies almost at home.
  • 27% said they mostly go to the theater.
  • 20% said they would do both.
  • 24% said they wouldn’t do either. They didn’t stream at home or go to the movies.

Charles: what are they doing? I’m confused. Do they have books or things? How does it work?

mat: read. Is it coming back? I’m not sure, but it still tells us what we want to entertain, but it’s still in conflict in the best way to do it.

So how does this affect AMC, which focuses on theater entertainment, compared to Netflix, which wants to stay home?

Charles: Well, let’s back up a little. Let’s go back to the variant and why discipline is scary. And it comes down to one thing. A new variant will appear. There are always new variants. The variant itself is not necessarily a problem or a panic. This particular variant depends on avoiding the vaccine. If it blows off the vaccine, we will soon return to the square, and it’s scary. That’s why the market sold out so badly the day after Thanksgiving.

However, this variant is a bit different from other variants, but if it turns out that it doesn’t blow the vaccine more than the Delta variant, for example, people will see it cool relatively quickly. We still don’t know why everyone panicked right after the news hit. And it will be a few more days before we do so. So we are all in standby mode with our fingers crossed.

Most people stream the series, not the movie

Charles: Well, let’s go back to the theater. Some things are happening. I’m streaming a lot of content. These days it’s almost difficult not to do so. I don’t have a cable. I don’t even know what’s on network TV anymore. Most of the content I see is streaming.

My own case experience here is consistent with what the data shows. The data show that about 85% of the streaming being done is not a movie. Series and show. Netflix is ​​the master of the 8- or 10-part miniseries. It’s a really good format for them and Disney. Amazon gets there.

So most of the time people see series and programs when streaming. They stream movies, but less often — about 15% of the streaming they do is movies. That’s great for AMC, as that means the movie is still a separate product. This had already happened before the pandemic occurred.

See the rest of the conversation with Matt about AMC and Netflix stocks here.

Where to find us

The mat that will appear this week is Bull & Bear It’s a podcast, so stay tuned.

Subscribe to YouTube

Don’t forget our check Ask Adam anything A video series where Chief Investment Strategist Adam O’Dell answers your questions.

You can also catch the mat every week The latest information on the marijuana market.. If you’re interested in cannabis investment, you don’t want to miss Matt’s weekly insights.

Remember, you can email me with my team Feedback@MoneyandMarkets.com — Or leave a comment on YouTube. We love to hear from you!May feature your questions and comments in future editions of Investing with Charles..

For safe benefit

Charles Sizemore_Sig

Charles Size More

Co-editor, Green Zone Fortune

Charles Size More Is a co-editor of Green Zone Fortune Specializes in income and retirement topics. He is also a frequent guest on CNBC, Bloomberg and Fox Business.

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