If you had $ 5,000 right now, would you put it on Netflix or AMC?
Each week, Benzinga conducts a sentiment survey on what excites, interests or thinks traders as they manage and build their personal portfolios.
This week, we asked more than 1,000 visitors to Benzinga the following question about investing in an entertainment business:
If you had $ 5,000, would you put it on Netflix Inc (NASDAQ: NFLX) or AMC Entertainment Holdings Inc (NYSE: AMC) right now?
The over-the-top content platform and production company Netflix received 41.2% support in this week’s study.
Last month, Netflix reported second-quarter EPS of $ 2.97, beating analysts’ consensus estimate of $ 3.15. Netflix also reported sales of $ 7.34 billion, beating analysts’ consensus estimate of $ 7.32 billion.
According to Netflix’s earnings report last month: “In the second quarter, revenue grew 19% year-on-year to $ 7.3 billion, while operating profit increased 36% year-on-year to $ 1.8 billion. We ended the quarter with over 209 million paid subscriptions, slightly ahead of our expectations. “
“COVID has created some instability in the growth of our members (higher growth in 2020, slower growth this year), which is catching on. We continue to focus on improving our service for our members and bringing them the best stories from around the world, ”the company said.
Additionally, Netflix revealed details of a foray into video games last month. Netflix says the games will be included with no additional subscription fees.
“We’re also in the early stages of our expansion into games, building on our earlier efforts around interactivity (eg, Black Mirror Bandersnatch) and our Stranger Things games. We see gaming as another new category of content for us, similar to our expansion into original films, animation and unscripted television, ”the company told investors.
“Games will be included in members’ Netflix subscription at no additional cost similar to movies and series. Initially, we will mainly focus on games for mobile devices. We are more excited than ever with our film and TV series offering and expect a long track of increasing investment and growth in all of our existing content categories, but since we are nearly a decade into our push in the original lineup, we think time is right to learn more about how our members enjoy games, ”the company reported.
Netflix is trading up 2.5% in the past six months, up 4.6% year-to-date and up 11.9% in the past year.
Meanwhile, 58.8% of traders and investors said they would invest in the world’s largest theater chain AMC.
Last month, AMC reported better-than-expected EPS and sales results for the second quarter. In particular, the company said it had more than $ 2 billion in cash.
AMC reported quarterly losses of 71 cents per share, which largely exceeded analysts’ consensus estimate of a loss of 93 cents per share. AMC also reported quarterly sales of $ 444.7 million, which quite easily exceeded analysts’ consensus estimate of $ 375.3 million.
Adam Aron, President and CEO of AMC, said: “The second quarter of 2021 has been a transformation for AMC. We raised another $ 1.25 billion in new equity (before commissions and fees) during the quarter, bringing our cash at the end of the quarter to over $ 2 billion (including cash and lines of credit). renewable unused), about double the previous record of this type. in AMC’s 101-year history.
As of June 30, 2021, AMC operated 593 national theaters representing 100% of its national theaters and 335 international theaters representing approximately 95% of its international theaters.
AMC says the majority of international theater operations were suspended during the first two months of the second quarter and did not reopen until early June.
Due to a series of epic short cutbacks amid high interest from retail investors, AMC shares have risen 425% in the past six months and 1,612% year-to-date.
Adam Aron has arguably been one of the most open-minded CEOs and willing to listen to merchant and investor commentary for the brand amid strong retail investor interest in the company.
Aron added in the second quarter earnings report: “AMC’s journey through this pandemic is not over and we are not out of the woods yet. However, while there is no guarantee as to what the future will bring in a world still plagued by infections, one can look to the future and envision a happy Hollywood ending for this story. We would like to think that one day when a movie is shot on AMC and COVID, its title will be a compelling word, “Recovery”. But only time will tell. “
This survey was conducted by Benzinga in August 2021 and included responses from a diverse population of adults aged 18 or older.
Registration for the survey was completely voluntary, and no incentives were offered to potential respondents. The study reflects the results of more than 1,000 adults.
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