ETFs
Stocks and ETFs will benefit from the success of “Inside Out 2”
The record-breaking performance of “Inside Out 2”, a 2024 American animated film produced by Pixar Animation Studios for Walt Disney DIS Pictures – not only reaffirms the appeal of animated blockbusters, but also strengthens investor confidence in the entertainment sector.
According to studio estimates Sunday, the film grossed $100 million in ticket sales during its second weekend, setting a new record for an animated film during its theatrical release, as cited on AP. In just a week and a half, “Inside Out 2” has claimed the title of highest-grossing film of 2024 to date with $724.4 million worldwide, including $355.2 million in U.S. and Canadian theaters .
“Inside Out 2” is expected to cross the $1 billion mark in about a week, making it the first film to reach that mark since “Barbie.” The resounding success of “Inside Out 2” surprised Hollywood, accustomed to moderate sales trends. The film industry had seen ticket sales this year fall about 40% from pre-pandemic totals, according to data firm Comscore, until “Inside Out 2” hit theaters.
Impact on the stock and ETF market
Stocks like Disney, AMC Entertainment AMC, Cinemark Holdings CNK, and Imax company IMAX is poised to capitalize on the film’s success, while media and entertainment-focused ETFs will likely benefit.
AMC reported its best weekend attendance and best box office receipts of 2024, indicating a strong recovery in theater attendance. Imaxknown for its high-end theatrical experiences, has also reaped the rewards of “Inside Out 2,” recording significant ticket sales for its worldwide screenings of the film.
As the industry eagerly awaits upcoming films like “Deadpool & Wolverine” and “Moana 2,” these stocks and ETFs could continue to attract attention from investors looking to profit from the resurgence in movie theater attendance and box office revenue.
Disney, which will report its third-quarter results in mid-August, could see its revenue increase thanks to “Inside Out 2.” As Pixar’s parent company, Disney stands to benefit not only from box office revenue, but also from merchandise sales and future licensing deals related to the film’s characters.
ETFs will benefit
ETFs such as Vanguard Communications Services ETF VOX and Fidelity MSCI Communications Services ETF FCOM includes stakes in Disney and other media giants. As a result, they are more likely to benefit from box office hits like “Inside Out 2.”
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The Walt Disney Company (DIS): Free Stock Analysis Report
IMAX Corporation (IMAX): Free Stock Analysis Report
Cinemark Holdings Inc (CNK): Free Stock Analysis Report
AMC Entertainment Holdings, Inc. (AMC): Free Stock Analysis Report
Vanguard Communication Services ETF (VOX): ETF Research Reports
Fidelity MSCI Communication Services Index (FCOM) ETF: ETF Research Reports