Entertainment Stocks Pummeled by Coronavirus

Matthew Clark

5 years ago

With cities locking down and people avoiding the urge to go out, it’s a good time to look at the entertainment stocks hurt by coronavirus.

Stocks are in a bear market as COVID-19 continues to spread globally, shutting down economies big and small.

Because of the outbreak, people are encouraged to stay home and entertain themselves instead of going out.

We’ve know retail and restaurant industries are taking a beating as a result, but another sector getting hit hard is the entertainment industry.

When people don’t go out, movie theaters, casinos and the like don’t make money. As a result, investors see those stocks as a huge risk.

Entertainment Stocks Hurt by Coronavirus

1. Wynn Resorts Ltd.

Market Capitalization: $5.8 billion

Annual Sales (2019): $6 billion

Annual Dividend Yield: 7.36%

Wynn Resorts Ltd. (Nasdaq: WYNN) was already hit hard when the coronavirus struck China. That downfall has only gotten worse since.

Wynn operates hotels and casinos in Las Vegas as well as Macau — a special administrative region in China.

Right before the coronavirus spread through China in January, Wynn reached more than $150 per share.

It dropped in the last half of January, then had a bounce upward into February.

However, since the virus has taken hold globally, Wynn has suffered dramatically. Its share price has fallen more than 74%, mostly in the last few weeks.

Wynn recently announced it is closing its facilities for at least two weeks. As long as they remain closed, the company will suffer.

That’s why Wynn Resorts Ltd. is one of the entertainment stocks hurt by coronavirus.

2. Las Vegas Sands

Market Capitalization: $31 billion

Annual Sales (2019): $13 billion

Annual Dividend Yield: 7.54%

Another big casino chain suffering as a result of the outbreak is Las Vegas Sands (NYSE: LVS).

Like Wynn Resorts, Las Vegas Sands operates hotels, casinos and malls in Las Vegas and Macau.

And, just like Wynn, it suffered a hit when the coronavirus took hold of China, as its Macau operation was hugely impacted.

Since then, shares of Las Vegas Sands have dropped more than 52% as investors continue to back away.

The company also announced it is closing all of its Las Vegas properties until April 1. It also pledged to pay its employees while the buildings are closed. That means there is no money coming in from gambling and hotel stays, but money is going out.

That’s going to impact the bottom line of Las Vegas Sands. That’s a big reason why Las Vegas Sands is one of the entertainment stocks hurt by coronavirus.

3, AMC Entertainment Holdings Inc.

Market Capitalization: $258 million

Annual Sales (2019): $5 billion

Annual Dividend Yield: 4.84%

While casinos are getting hit, but they aren’t the only ones.

As more and more Americans are avoiding public places, movie theaters are looking at significant declines in attendance.

AMC Entertainment Holdings Inc. (NYSE: AMC) owns theaters in the U.S. and internationally.

Its shares were already trending down before the coronavirus outbreak was first reported. Since then, the decline has been deeper.

Since the middle of February, shares of AMC have cratered by more than 67%.

The company recently said it is closing all of its locations in the U.S. for “at least six to 12 weeks,” meaning there is no revenue coming in for two to three months.

That means AMC will likely continue to trend down as investors realize the horrific impact the closure will have on its bottom line.

It’s why AMC Entertainment Holdings Inc. is one of the entertainment stocks hurt by coronavirus.

4. Walt Disney Co.

Market Capitalization: $168 billion

Annual Sales (2019): $69 billion

Annual Dividend Yield: 1.88%

If there is a diversified entertainment company, Walt Disney Co. (NYSE: DIS) is it.

The house that Mickey built operates media networks, theme parks and movie studios — all of which have global reach.

Disney’s theme park in China was negatively impacted by the coronavirus early, but it has since closed all of its theme parks — including ones in California and Florida.

Disney stock appeared to weather the initial spread, but it has not been as lucky in February and March.

The coronavirus spread coupled with the announcement the CEO Bob Iger was stepping down has beaten Disney stock down significantly.

Since Feb. 4, 2020, shares of Disney have fallen more than 44%.

Just like with other entertainment companies, as long as parks, theaters and other attractions remain closed, stocks like Disney are going to suffer.

That’s why Walt Disney Co. is one of the one of the entertainment stocks hurt by coronavirus.

5. ViacomCBS Inc.

Market Capitalization: $7 billion

Annual Sales (2019): $27 billion

Annual Dividend Yield: 7.54%

ViacomCBS Inc. (Nasdaq: VIAC) expected big things once the merger between Viacom and CBS was complete.

Those gains haven’t been realized.

ViacomCBS operates several entities like CBS, Showtime, Paramount Pictures, MTV, Comedy Central and Nickelodeon.

While it was already trending down at the end of 2019, shares of ViacomCBS have fallen nearly 68% since the middle of February.

Things are likely to get much worse for ViacomCBS as it prepares its next quarterly report. Even as markets ticked up the record highs in mid-February, the company lagged behind.

It all points to a continued rough go for shares. That’s why ViacomCBS Inc. is one of the entertainment stocks hurt by coronavirus.

6. Cinemark Holdings Inc.

Market Capitalization: $815 million

Annual Sales (2019): $3 billion

Annual Dividend Yield: 1.44%

Like AMC, Cinemark Holdings Inc. (NYSE: CNK) operates cinemas in the U.S. and 12 countries, including Mexico, South American and Central America.

All told, the company has 408 theaters and 4,657 screens around the world.

The Texas-based entity recently announced it will temporarily close all of 345 theaters in the U.S. in response to the spread of the coronavirus.

Before the virus took hold in the U.S., Cinemark was trading relatively flat for the last half of 2019.

Following a slight uptick to $31 per share in February, Cinemark shares have tumbled almost 80% into the middle of March.

Closing its theaters coupled with the massive decline it has already seen means Cinemark is in for some rough times ahead, making it one of the entertainment stocks hurt by coronavirus.

Editor’s Note: Looking for stocks to buy not on our list? Let us know in the comments below.

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