Imax (NYSE:IMAX) Stock, Quote.Headers.trade-ideas

Imax

Imax Corp is a premier global technology platform for entertainment and events. Through its proprietary software, auditorium architecture, patented intellectual property, and specialized equipment, IMAX offers a unique end-to-end solution to create superior, immersive content experiences for which the IMAX brand is globally renowned. Top filmmakers, movie studios, artists, and creators utilize the cutting-edge visual and sound technology of IMAX to connect with audiences in innovative ways. The Company leverages its proprietary technology and engineering in all aspects of its business, which principally consists of the IMAX film remastering and the sale or lease of premium IMAX theater systems.

Asia

Entertainment

Penny Stocks

Small Cap

Markets

General

IMAX

Key Takeaways:


	Imax China reported its profit fell 9% to $12.65 million in the first half of this year
	Some observers expect a potential new privatization bid for the Chinese cinema company by its Canadian parent, after a previous bid failed


By Lau Chi Hang

As Chinese Cinema Spotlight Fades, Investors See Value In Imax China As Privatization Play

7 Cameos You Likely Missed In 'Deadpool & Wolverine'

News

Media

Walt Disney Co and Marvel Studios&#39; Deadpool &amp; Wolverine becomes 2024&#39;s 2nd highest grossing movie with $824 million. Disney surpasses $3 billion worldwide ticket sales.

Deadpool &amp; Wolverine Grosses $824M Globally, Disney Hits $3B Milestone: Report

AMC movie theater

Movers

AMC Entertainment Holdings, Inc. (NYSE: AMC) shares are trading higher Wednesday. This positive movement possibly follows a series of favorable developments for the company this week.

What&#39;s Going On With AMC Shares Today?

Imax Corp

IMAX CHINA HLDG INC ORD by IMAX China Hldg Inc

IMAX China Holding Inc

Wedbush analyst Alicia Reese maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Outperform and raises the price target from $24 to $26.

Price Target

Analyst Ratings

Wedbush Maintains Outperform on Imax, Raises Price Target to $26

<h4>Key Takeaways:</h4>
<ul>
<li>Imax China reported its profit fell 9% to $12.65 million in the first half of this year</li>
<li>Some observers expect a potential new privatization bid for the Chinese cinema company by its Canadian parent, after a previous bid failed</li>
</ul>
By Lau Chi Hang
It once wowed investors with a story of riches from the potent combination of its big-screen technology and a booming Chinese box office with potential to become the world&rsquo;s largest. But these days&nbsp;Imax China Holding Inc.&nbsp;(1970.HK) looks far less promising, as its technology that once looked so hot has failed to catch on and growth at China&rsquo;s box office also slows.
The China unit of Canada&rsquo;s&nbsp;Imax Corp.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/imax#NYSE">IMAX</a>) has also been far from a crowd pleaser among investors, with its shares now trading 72% below what they fetched when the company made a Hong Kong IPO in 2015.&nbsp;
The disappointment continued this year, as Imax China&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0725/2024072501559.pdf">reported&nbsp;</a>its revenue fell 3.2% in the first half of 2024 to $43.9 million, while its profit also sagged nearly 9% to $12.65 million. The company&rsquo;s gross margin also fell 6.1 percentage points to 57.2% from 63.3% a year earlier.
Imax is known for its film production and projection systems with higher resolution, sharpness, greater contrast and more complete color than traditional movie technology. Imax China gets its revenue from two sources, namely, &ldquo;content solutions&rdquo; that convert movies and other content into the Imax format; and other technology products and services that include rentals, sales and maintenance for Imax systems used by third-party cinema operators.
Content solutions is the smaller of that pair, taking a beating as its revenue tumbled 34% in the first half to $9.35 million. It blamed the decline on weak Imax movie ticket sales, which fell to $108 million during the six months from $165 million a year earlier. Its technology products and services fare better, with revenue up 10% to $34.1 million year-on-year.
<h3>Unsuitable Films</h3>
One of Imax&rsquo;s strongest selling points is the high-resolution and 3D qualities it brings to films. But the format isn&rsquo;t necessary for all movies, and is generally best suited to genres like science fiction, fantasy or movies with very visually distinct scenes. Other genres, such as art-house, romance, comedy or daily life-themed movies, benefit little from the format.
Accordingly, years with more visually attractive films tend to bring a strong box office for Imax China. Last year was a case in point with the release in China of a series of sci-fi, fantasy and other visually notable blockbusters, including &ldquo;Avatar: The Way of Water,&rdquo; &ldquo;Oppenheimer,&rdquo; and &ldquo;The Wandering Earth 2.&rdquo; Audiences often preferred to watch such films in Imax theaters and willingly paid a premium for the more expensive tickets, generating a revenue bonanza for the company. But this year so far has failed to produce a similar string of suitable big hits for Imax&rsquo;s big-screen format, pressuring the company&rsquo;s ticket sales.&nbsp;
<h3>Waning&nbsp;Box Office Boom</h3>
Another factor hitting the company is the fading of a movie-going boom after China lifted its strict pandemic restrictions at the start of last year. People flocked to theaters at first in their eagerness to get out and about again, fueling a surge in ticket sales.&nbsp;
But that boom has subsided lately as China&rsquo;s slowing economy causes consumers to rein in their spending. China&rsquo;s box office took in 1.53 billion yuan ($214 million) during this year&rsquo;s five-day Labor Day holiday at the beginning of May, similar to the previous year. If the remaining two months of the summer holidays are similar to July&rsquo;s box office of 7.5 billion yuan, the summer box office is likely to total less than 20 billion yuan this year, also flat from last year&rsquo;s 20.6 billion yuan.&nbsp;
Such a slowdown doesn&rsquo;t bode well for Imax China&rsquo;s prospects, at least not in the near-term. When it went public in 2015, investors were mesmerized with a Chinese box office that grew 30.7% in the period from 2010 to 2014. At that time, a growing preference for premium viewing experiences by China&rsquo;s growing middle class also convinced investors that demand for Imax movies would continue to grow.&nbsp;。
But the fast growth slammed to a halt during the pandemic, and has failed to return since then, with demand for Imax movies falling far short of expectation. While things picked up after the end of pandemic restrictions last year, the new normal characterized by an economic slowdown and consumer caution is hurting demand for more premium products like Imax films.
<h3>Privatization Story</h3>
Imax China&rsquo;s stock fell nearly 7% after the interim results were announced, and the stock is now down 86% from the HK$60 it reached not long after its listing.
Last July, its Canadian parent attempted to take the company private and offered to purchase the shares for HK$10 apiece, representing a 40% premium to the price before the offer. But the Canadian fund Letko rejected the offer as too low, and also opposed the privatization as the Chinese box office seemed to be coming back to life. Its opposition and a subsequent shareholder revolt ultimately caused the privatization bid to fail.
To get its way, Imax threatened that its China offspring might stop paying dividends if minority shareholders didn&rsquo;t approve the privatization. That left a bad taste in the mouth of many investors, surprised at how far the company was willing to go to complete the delisting.&nbsp;
The privatization bid&rsquo;s collapse sent Imax China&rsquo;s stock into a tailspin, though it has started to recover since May. That&rsquo;s fueling speculation that some investors may be returning to the stock in anticipation of a new privatization bid with a similar premium to the first one.&nbsp;
Imax China&rsquo;s price-to-earnings (P/E) ratio currently stands at 13 times, which looks relatively strong considering that many rivals like&nbsp;AMC&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>) and&nbsp;Orange Sky Golden Harvest Entertainment&nbsp;(1132.HK) are still losing money. But it could have room to grow further if a new privatization offer may be coming. That said, the stock really doesn&rsquo;t seem to offer much for investors right now purely based on the company&rsquo;s fundamentals, given the slowdown in China&rsquo;s movie market and growing consumer caution that may dampen demand for its pricier Imax movie tickets.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and Marvel Studios&#8217; &#8220;Deadpool &amp; Wolverine&#8221; continue dominating the box office, grossing $824 million globally after two weekends in release.
The movie raked <a target="_blank" href="https://www.benzinga.com/news/24/07/39991247/disney-amc-and-imax-stocks-surge-after-deadpool-wolverine-breaks-box-office-records" rel="noreferrer noopener">$38.5 million in</a> Thursday previews, reaching a record for an R-rated film.
The comic book sequel, featuring Ryan Reynolds and Hugh Jackman reprising their roles, has already surpassed the entire theatrical runs of 2016&#8217;s &#8220;Deadpool&#8221; ($783 million) and 2018&#8217;s &#8220;Deadpool 2&#8221; ($786 million), Variety <a target="_blank" href="https://www.theverge.com/2024/8/2/24212016/game-informer-shutting-down-layoffs-gamestop" rel="noreferrer noopener">reports</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/08/40099971/disney-plans-more-layoffs-in-tv-unit-focuses-on-streaming-investments-report" rel="noreferrer noopener">Disney Plans More Layoffs in TV Unit, Focuses on Streaming Investments: Report</a>
&#8220;Deadpool &amp; Wolverine&#8221; is now the second-highest grossing movie of 2024, trailing only &#8220;Inside Out 2&#8221; ($1.555 billion), and ranks as the third-biggest R-rated movie in history after &#8220;Joker&#8221; ($1.07 billion) and &#8220;Oppenheimer&#8221; ($975 million). It&#8217;s on track to cross the $1 billion mark soon.
This weekend, Disney became the first studio in 2024 to surpass $3 billion in worldwide ticket sales with only four nationwide releases: &#8220;Deadpool &amp; Wolverine,&#8221; &#8220;Inside Out 2,&#8221; &#8220;Kingdom of the Planet of the Apes&#8221; ($397 million), and &#8220;The First Omen&#8221; ($53 million).
The film has also performed well in premium formats like Imax Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>), contributing $17.5 million in global weekend ticket sales and $64.5 million.
Disney purchased Marvel for $4 billion in 2009. According to the Hollywood Reporter&#8217;s March reports, <a target="_blank" href="https://www.benzinga.com/news/24/08/40129336/disney-leverages-marvel-avengers-franchise-for-new-cruise-line-experience" rel="noreferrer noopener">Marvel has added</a> approximately $13.2 billion in value to Disney.
In May, Disney reported&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38669929/walt-disney-q2-earnings-profit-beat-moderating-parks-growth-password-sharing-crackdown-and-more" rel="noreferrer noopener">revenue growth of 1%</a> year-on-year to $22.08 billion, lagging the&nbsp;analyst consensus estimate of $22.11 billion.
Investors can gain exposure to Disney through SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Price Actions: DIS shares closed lower by 3.74% at $89.57 on Friday. IMAX closed higher by 0.57% at $21.30.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Marvel Entertainment

Deadpool & Wolverine Grosses $824M Globally, Disney Hits $3B Milestone: Report

AMC Entertainment Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>) shares are trading higher Wednesday. This positive movement possibly follows a series of favorable <a href="https://www.benzinga.com/news/24/07/40047063/whats-going-on-with-amc-entertainment-stock">developments for the company this week.</a>
AMC is scheduled to release its second-quarter financial results on August 2. Preliminary results indicate that AMC expects second-quarter revenue of approximately $1.03 billion. Additionally, the company expects a second-quarter loss of 43 cents per share.
During the week, AMC also announced it set new 2024 records for weekend attendance and admissions revenue at its U.S. theaters from Thursday to Sunday. This record-breaking performance was led by the opening weekend of Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and Marvel's &#8220;Deadpool &amp; Wolverine,&#8221; which set new all-time opening weekend records for an R-rated film. 
Furthermore, AMC posted its highest food and beverage revenue for a single weekend since 2019 and sold more beer, wine and cocktails over the weekend than in any other weekend in company history.
Why It Matters: CEO Adam Aron highlighted the upward trajectory of moviegoing trends and noted a significant increase in daily revenue in June compared to April and May.
AMC Price Action: AMC shares are up 5.19% at $5.37 at the time of writing, according to<a href="https://pro.benzinga.com/dashboard"> Benzinga Pro.</a>
<figure class="wp-block-image size-large is-resized"><a href="http://www.benzinga.com/pro/register/?utm_source=BZprocontent073124&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="543" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/31131618/AMC-1-1024x543.png" alt="" class="wp-image-468404" style="width:550px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/31131618/AMC-1-1024x543.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/31131618/AMC-1-300x159.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/31131618/AMC-1-768x407.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/31131618/AMC-1.png 1087w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
See Also: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/07/40076664/trump-launches-limited-edition-bitcoin-themed-sneakers-following-bitcoin-2024-keynote-repo">Trump Launches Limited Edition Bitcoin-Themed Sneakers Following Bitcoin 2024 Keynote: Report</a></li>
</ul>
Photo via Shutterstock.

What's Going On With AMC Shares Today?

AMC Entertainment Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>) has seen strong momentum since Imax Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) jumped on strong second-quarter earnings results last week. Here&#8217;s what <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40006542/apple-amazon-microsoft-meta-lead-the-charge-as-investors-bank-on-tech-cheer-for-ral">you need to know</a>.
What To Know: AMC shares have been trending higher in recent sessions since the stock <a href="https://www.benzinga.com/news/24/07/39968468/whats-going-on-with-amc-entertainment-stock-on-thursday">popped last week</a> following Imax&#8217;s better-than-expected financial results. 
Imax CEO Rich Gelfond said on the call that lingering effects of the pandemic and strikes are &#8220;firmly behind&#8221; the company, calling the quarter an &#8220;inflection point&#8221; for Imax&#8217;s business. 
AMC scheduled its&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">second-quarter financial results</a>&nbsp;for Aug. 2 and reported preliminary results last week. 
AMC expects second-quarter revenue of approximately $1.03 billion versus estimates of $1.018 billion, according to estimates from&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>. The company anticipates a second-quarter loss of 10 cents per share versus estimates for a loss of 43 cents per share.&nbsp;
See Also: <a href="https://www.benzinga.com/news/earnings/24/07/40038023/magnificent-seven-face-pivotal-market-moment-as-4-mega-tech-giants-report-earnings-this-week">Magnificent 7 Face Pivotal Market Moment As 4 Mega Tech Giants Report Earnings This Week</a>
AMC on Monday announced that it set new 2024 records for weekend attendance and admissions revenue at its U.S. theater locations&nbsp;this past Thursday through Sunday.
The record-breaking performance was led by the opening weekend of Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and Marvel&#8217;s <a href="https://www.benzinga.com/news/24/07/39991247/disney-amc-and-imax-stocks-surge-after-deadpool-wolverine-breaks-box-office-records" target="_blank" rel="noreferrer noopener">"Deadpool &amp; Wolverine,"</a>&nbsp;which set new all-time opening weekend records for an R-rated film.
AMC also posted its highest food and beverage revenue for a single weekend since 2019. In the U.S., AMC said it sold more beer, wine and cocktails over the weekend than in any other weekend in AMC company history.
"AMC has been predicting for quite some time that moviegoing would return to lofty levels this summer. The trifecta of INSIDE OUT 2, DESPICABLE ME 4 and DEADPOOL &amp; WOLVERINE, combined with a myriad of other successful movies, has proven us right," said&nbsp;Adam Aron, chairman and CEO of AMC.
Aron noted that moviegoing trends appear to be on an &#8220;upwards trajectory,&#8221; and the company said it saw a &#8220;significant increase&#8221; in daily revenue in June, compared to April and May. 
AMC Price Action: <a href="https://www.benzinga.com/quote/AMC" target="_blank" rel="noreferrer noopener">AMC shares</a> were up 1.06% at $5.22 at the time of writing Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Photo: <a href="https://www.flickr.com/photos/davedugdale/">Dave Dugdale</a> from Flickr.

What's Going On With AMC Entertainment Stock?

Have you evaluated the performance of Imax&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/imax#NYSE">IMAX</a>) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this entertainment technology company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
The global economy today is deeply interlinked, making a company&#39;s engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm&#39;s potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing IMAX&#39;s performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The recent quarter saw the company&#39;s total revenue reaching $88.96 million, marking a decline of 9.2% from the prior-year quarter. Next, we&#39;ll examine the breakdown of IMAX&#39;s revenue from abroad to comprehend the significance of its international presence.
A Closer Look at IMAX&#39;s Revenue Streams Abroad
Greater China accounted for 25.6% of the company&#39;s total revenue during the quarter, translating to $22.75 million. Revenues from this region represented a surprise of +16.31%, with Wall Street analysts collectively expecting $19.56 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $21.45 million (27.1%) and $19.11 million (19.5%) to the total revenue, respectively.
Of the total revenue, $9.59 million came from Asia excluding Greater China during the last fiscal quarter, accounting for 10.8%. This represented a surprise of -25.97% as analysts had expected the region to contribute $12.95 million to the total revenue. In comparison, the region contributed $9.13 million, or 11.5%, and $15.96 million, or 16.3%, to total revenue in the previous and year-ago quarters, respectively.
Western Europe generated $10.51 million in revenues for the company in the last quarter, constituting 11.8% of the total. This represented a surprise of -20.99% compared to the $13.3 million projected by Wall Street analysts. Comparatively, in the previous quarter, Western Europe accounted for $14.19 million (17.9%), and in the year-ago quarter, it contributed $19.81 million (20.2%) to the total revenue.
During the quarter, Rest of the World contributed $2.4 million in revenue, making up 2.7% of the total revenue. When compared to the consensus estimate of $4.08 million, this meant a surprise of -41.1%. Looking back, Rest of the World contributed $3.88 million, or 4.9%, in the previous quarter, and $3.37 million, or 3.4%, in the same quarter of the previous year.
Of the total revenue, $2.26 million came from Latin America during the last fiscal quarter, accounting for 2.5%. This represented a surprise of -27.16% as analysts had expected the region to contribute $3.1 million to the total revenue. In comparison, the region contributed $1.46 million, or 1.9%, and $2.83 million, or 2.9%, to total revenue in the previous and year-ago quarters, respectively.
Canada generated $3.16 million in revenues for the company in the last quarter, constituting 3.6% of the total. This represented a surprise of +0.61% compared to the $3.14 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $2.41 million (3%), and in the year-ago quarter, it contributed $4.1 million (4.2%) to the total revenue.
Anticipated Revenues in Overseas Markets
For the current fiscal quarter, it is anticipated by Wall Street analysts that Imax will report a total revenue of $98.07 million, which reflects a decline of 5.6% from the same quarter in the previous year. The revenue contributions are expected to be 23.9% from Greater China ($23.48 million), 15% from Asia excluding Greater China ($14.74 million), 14.6% from Western Europe ($14.3 million), 5.2% from Rest of the World ($5.05 million), 3.5% from Latin America ($3.46 million) and 3.9% from Canada ($3.82 million).
Analysts expect the company to report a total annual revenue of $371.95 million for the full year, marking a decrease of 0.8% compared to last year. The expected revenue contributions from Greater China, Asia excluding Greater China, Western Europe, Rest of the World, Latin America and Canada are projected to be 24.5% ($91.29 million), 14.4% ($53.55 million), 15.9% ($59.03 million), 5.2% ($19.31 million), 3.4% ($12.54 million) and 3.7% ($13.79 million) of the total revenue, in that order.
In Conclusion
The dependency of Imax on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm&#39;s future performance.
With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company&#39;s domestic market status, also impact these earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company&#39;s changing earnings outlook, as empirical research has shown that&#39;s a powerful force driving a stock&#39;s near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Imax holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market&#39;s performance in the forthcoming period.
Examining the Latest Trends in Imax&#39;s Stock Value
Over the preceding four weeks, the stock&#39;s value has appreciated by 19.8%, against a downturn of 0.2% in the Zacks S&amp;P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Imax among its entities, has depreciated by 1.7%. Over the past three months, the company&#39;s shares have seen an increase of 20.2% versus the S&amp;P 500&#39;s 7.5% increase. The sector overall has witnessed an increase of 1.4% over the same period.
<a href="https://www.zacks.com/stock/news/2310761/imax-imax-international-revenue-performance-explored?cid=CS-BENZ-FT-fundamental_analysis|nfm_international_revenues-2310761">To read this article on Zacks.com click here.</a>

Earnings

Trading Ideas

Imax International Revenue Performance Explored

Achieves Biggest R-Rated And July Opening, Eighth Biggest IMAX Opening Ever, And Biggest Since Avatar: The Way of Water

Disney/Marvel's Deadpool & Wolverine Sets IMAX Records With $36.5M Global Debut

The Marvel Entertainment and Walt Disney (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) collaboration, &#8220;Deadpool &amp; Wolverine,&#8221; has set new records at the box office, grossing over $438.3 million worldwide in its opening weekend.
What Happened: The film&#8217;s international earnings were $233.3 million, while domestic earnings hit $205 million, making it the largest R-rated opening ever, both domestically and globally, <a href="https://deadline.com/2024/07/deadpool-wolverine-global-international-box-office-1236023236/">reported</a> Deadline on Sunday.
The success of &#8220;Deadpool &amp; Wolverine&#8221; has propelled the Marvel Cinematic Universe&#8217;s (MCU) total worldwide earnings beyond the $30 billion mark. The film, featuring Ryan Reynolds and Hugh Jackman, topped the charts in all markets where it was released.
See Also: <a href="https://www.benzinga.com/news/24/07/40000541/apples-market-share-drops-in-china-a18-chip-integration-to-bring-ai-features-to-iphone-16-and-more-t?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple&#8217;s Market Share Drops In China, A18 Chip Integration To Bring AI Features To iPhone 16 And More: This Week In Appleverse</a>
In several markets, including Germany, the U.K., Australia, the Netherlands, Hong Kong, and Taiwan, &#8220;Deadpool &amp; Wolverine&#8221; had the biggest opening weekend of 2024. 
The film grossed $94.5 million across Europe, marking the best start ever for a U.S. R-rated movie in the region, the report noted.
In the Asia-Pacific region (excluding China), the film earned $60.1 million. In China, the film&#8217;s opening was estimated at $24 million. Latin America saw earnings of $54.7 million, making it the second-highest opening weekend in 2024 across the region.
The film also performed well in Imax Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>), with a global haul of $36.5 million, marking the eighth biggest for the format ever and the best for July as well as for an R-rated title. 
Imax CEO Rich Gelfond commented on the film&#8217;s success, stating, &#8220;Deadpool &amp; Wolverine delivered one of the biggest Imax opening weekends of all time.&#8221;
Why It Matters: The film&#8217;s record-breaking performance <a href="https://www.benzinga.com/news/24/07/39991247/disney-amc-and-imax-stocks-surge-after-deadpool-wolverine-breaks-box-office-records">had a positive impact on the stocks</a> of Walt Disney, AMC Entertainment Holdings, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>), and Imax, as they all experienced a surge following the box office reports. 
The film&#8217;s success was anticipated, <a href="https://www.benzinga.com/general/entertainment/24/02/37147153/deadpool-3-trailer-breaks-records-thanks-to-super-bowl-could-the-movie-become-highest-gross">as its trailer</a>, released during Super Bowl LVIII, had already broken records, hinting at the film&#8217;s potential to become the highest-grossing R-rated movie.
Price Actions: On Friday, DIS shares rose by 0.81% to $89.93. AMC increased by 0.78% to $5.18, and IMAX climbed by 3.56% to $20.09. While DIS shares dropped slightly and Imax saw no change, AMC shares increased further during the after-hours session reaching $5.19, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39926002/after-donald-trumps-recent-taiwan-statement-sent-shockwaves-japans-pm-kishida-reveals-new-bill-to-bo?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">After Donald Trump&#8217;s Recent Taiwan Statement Sent Shockwaves, Japan&#8217;s PM Kishida Reveals New Bill To Boost AI And Chipmaking With Domestic Investment</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tech

Ryan Reynolds, Hugh Jackman Starrer 'Deadpool & Wolverine' Breaks Box Office Records, Rakes In Over $438M For Disney's Marvel At Global Opening

Marvel Studios and Walt Disney Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) &#8220;Deadpool &amp; Wolverine&#8221; earned $38.5 million in Thursday previews, marking the highest ever for an R-rated film.
The film joins an elite group, including installments from significant franchises like Avengers, Star Wars, Spider-Man, and the final Harry Potter film.
Disney and movie theatre stocks AMC Entertainment Holdings, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>) and Imax Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) stocks are already soaring Friday following the box office reports.
&#8220;Deadpool &amp; Wolverine&#8221; marks the official MCU debut of Ryan Reynolds&#8217;s Merc With a Mouth and Hugh Jackman&#8217;s be-clawed X-Men character.
The Thursday haul is the biggest of the year so far, easily surpassing Disney&#8217;s animated family hit &#8220;Inside Out 2,&#8221; which made $13 million last month, Variety <a target="_blank" href="https://variety.com/2024/film/news/box-office-deadpool-and-wolverine-thursday-previews-1236084797/" rel="noreferrer noopener">reports</a>.
It&#8217;s also the highest preview gross ever for an R-rated movie. The first &#8220;Deadpool&#8221; made $12.7 million in Thursday night previews back in 2016, and its 2018 sequel topped that with $18.6 million, which held the R-rated record until now.
Internationally, where &#8220;Deadpool &amp; Wolverine&#8221; is open in every primary market except China, the film has earned $64.8 million. The movie will begin screening in China on Friday.
<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39673877/movie-theater-analyst-sizes-up-amc-cinemark-and-more-predicts-box-office-rebound-in" rel="noreferrer noopener">Industry analysts expect</a> &#8220;Deadpool &amp; Wolverine&#8221; to continue breaking records as the weekend progresses.
Disney, AMC Entertainment, and Imax analysts had <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39601522/disney-bringing-back-box-office-magic-analyst-praises-inside-out-2-performance-look" rel="noreferrer noopener">bullish predictions on</a> their prospects based on &#8220;Deadpool &amp; Wolverine&#8221; as the industry recuperated from Hollywood strikes.
On Thursday, AMC Entertainment automatically <a target="_blank" href="https://www.benzinga.com/news/24/07/39968468/whats-going-on-with-amc-entertainment-stock-on-thursday" rel="noreferrer noopener">got a boost</a> from Imax&#8217;s upbeat second-quarter results. Both companies voiced their optimistic outlook for 2024 and 2025, backed by their robust pipelines.
Price Actions: DIS shares traded higher by 0.98% at $90.08 at the last check on Friday. AMC is up 1.36% at $5.21, and IMAX is up 2.37% at $19.86.
Image via Marvel

Disney, AMC, And IMAX Stocks Surge After "Deadpool & Wolverine" Breaks Box Office Records

IMAX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) reported better-than-expected second-quarter <a href="https://www.benzinga.com/news/earnings/24/07/39960200/why-imax-stock-is-soaring-on-thursday">sales results on Thursday</a>.
Imax reported quarterly EPS of 18 cents, which quashed the analyst consensus estimate of 7 cents. The quarterly sales were $88.96 million, down 9% year over year, beating the analyst consensus estimate of $76.01 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Content Solutions revenues of $35 million grew by 12% year-on-year, while Technology Products and Services revenues decreased 20% year-on-year to $51 million.
Rich Gelfond, CEO of IMAX. "The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we've ever seen."
Imax raised its Imax system installation guidance to 130 – 150 for the full year 2024 versus 128 for the full year 2023.
Imax shares gained 3.1% to trade at $20.00 on Friday.
These analysts made changes to their price targets on Imax following the announcement.
Macquarie analyst Chad Beynon maintained Imax with an Outperform rating, while raising the price target from $24 to $26.
<ul>
<li>Barrington Research analyst James Goss maintained the stock with an Outperform rating and maintained a $25 price target.</li>
<li>Wedbush analyst Alicia Reese maintained Imax with an Outperform rating and boosted the price target from $22 to $24.</li>
<li>Rosenblatt analyst Steve Frankel maintained the stock with a Buy rating and raised the price target from $25 to $28.</li>
<li>Roth MKM analyst Eric Handler maintained Imax with a Buy rating, while raising the price target from $23 to $27.</li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39984491/nvidia-lockheed-martin-and-2-other-stocks-insiders-are-selling">Nvidia, Lockheed Martin And 2 Other Stocks Insiders Are Selling</a></li>
</ul>

These Analysts Boost Their Forecasts On Imax After Q2 Results

Roth MKM analyst Eric Handler maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Buy and raises the price target from $23 to $27.

Roth MKM Maintains Buy on Imax, Raises Price Target to $27

Rosenblatt analyst Steve Frankel maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Buy and raises the price target from $25 to $28.

Rosenblatt Maintains Buy on Imax, Raises Price Target to $28

Wedbush analyst Alicia Reese maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Outperform and raises the price target from $22 to $24.

Wedbush Maintains Outperform on Imax, Raises Price Target to $24

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.
<ul>
<li>RBC Capital increased RTX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) price target from $102 to $115. RBC Capital analyst Ken Herbert maintained a Sector Perform rating. RTX shares gained 1% to trade at $114.58 on Friday. <a href="https://www.benzinga.com/quote/RTX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Goldman Sachs cut the price target for Coursera, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COUR#NYSE">COUR</a>) from $10.5 to $9. Goldman Sachs analyst Eric Sheridan maintained a Sell rating. Coursera shares gained 50% to trade at $11.12 on Friday. <a href="https://www.benzinga.com/quote/COUR/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Wells Fargo boosted the price target for Tyler Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) from $580 to $600. Wells Fargo analyst Michael Turrin maintained an Overweight rating. Tyler Technologies shares gained 3.1% to trade at $581.88 on Friday. <a href="https://www.benzinga.com/quote/TYL/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler cut the price target for Dow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>) from $68 to $64. Piper Sandler analyst Charles Neivert maintained an Overweight rating. Dow shares fell 0.1% to trade at $52.80 on Friday. <a href="https://www.benzinga.com/quote/DOW/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Macquarie boosted IMAX Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) price target from $24 to $26. Macquarie analyst Chad Beynon maintained an Outperform rating. IMAX shares rose 1.8% to trade at $19.74 on Friday. <a href="https://www.benzinga.com/quote/IMAX/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Truist Securities raised the price target for Tractor Supply Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>) from $289 to $293. Truist Securities analyst Scot Ciccarelli maintained a Buy rating. Tractor Supply shares rose 2.7% to trade at $264.49 on Friday. <a href="https://www.benzinga.com/quote/TSCO/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Susquehanna cut Rambus Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMBS#NASDAQ">RMBS</a>) price target from $75 to $66. Susquehanna analyst Mehdi Hosseini maintained a Positive rating. Rambus shares gained 1.9% to trade at $57.87 on Friday. <a href="https://www.benzinga.com/quote/RMBS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Barclays boosted AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) price target from $187 to $200. Barclays analyst Carter Gould maintained an Overweight rating. AbbVie shares rose 2.1% to trade at $185.90 on Friday. <a href="https://www.benzinga.com/quote/ABBV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham raised LendingTree, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TREE#NASDAQ">TREE</a>) price target from $56 to $67. Needham analyst Mayank Tandon maintained a Buy rating. LendingTree shares fell 2.3% to trade at $53.47 on Friday. <a href="https://www.benzinga.com/quote/TREE/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Deutsche Bank boosted Lockheed Martin Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) price target from $540 to $600. Deutsche Bank analyst Scott Deuschle upgraded the stock from Hold to Buy. Lockheed Martin shares rose 0.8% to trade at $525.61 on Friday. <a href="https://www.benzinga.com/quote/LMT/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39984491/nvidia-lockheed-martin-and-2-other-stocks-insiders-are-selling">Nvidia, Lockheed Martin And 2 Other Stocks Insiders Are Selling</a></li>
</ul>

ABBV

COUR

RMBS

TREE

TSCO

Lockheed Martin To Rally Over 14%? Here Are 10 Top Analyst Forecasts For Friday

Barrington Research analyst James Goss maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Outperform and maintains $25 price target.

Barrington Research Maintains Outperform on Imax, Maintains $25 Price Target

Macquarie analyst Chad Beynon maintains Imax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) with a Outperform and raises the price target from $24 to $26.

Macquarie Maintains Outperform on Imax, Raises Price Target to $26

AMC Entertainment Holdings, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMC#NYSE">AMC</a>) is trading up Thursday, reversing its Wednesday losses. The stock is up over 7%.
The American movie theater chain got a boost from Imax Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) upbeat <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39960200/why-imax-stock-is-soaring-on-thursday" rel="noreferrer noopener">second-quarter print</a> on Thursday.
The Canadian production theatre company&#8217;s quarterly sales were $88.96 million, down 9% year over year, beating the analyst consensus of $76.01 million. EPS of $0.18 surpassed the&nbsp;consensus estimate of $0.07.
Imax increased its 2024 Imax system installation guidance to 130 – 150, up from 128 for 2023, as it looks to tap new releases from its reputed filmmaking partners and studio franchises and a record of at least 14 films shot with IMAX cameras in 2025. Imax is up close to 7%.
AMC&#8217;s <a href="https://www.benzinga.com/news/earnings/24/07/39934598/amc-entertainment-stock-is-tumbling-wednesday-whats-going-on" target="_blank" rel="noreferrer noopener">second-quarter guide</a> disappointed the Street on Wednesday. However, Chair and CEO Adam Aron flagged a bullish outlook for theater movie-going as it recovers from actors&#8217; and writers&#8217; strikes. 
He highlighted the boost in daily revenue from June 2024, continuing in July, with continued box office momentum in the second half of 2024 and into 2025 and 2026.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25122649/newplot-64.png" alt="" class="wp-image-457401" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25122649/newplot-64.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/25122649/newplot-64-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
In July, B. Riley Securities analyst Eric Wold noted AMC has a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39673877/movie-theater-analyst-sizes-up-amc-cinemark-and-more-predicts-box-office-rebound-in" target="_blank" rel="noreferrer noopener">51% market share</a> of IMAX screens in the US. Wold projected a box office rebound in 2025, backed by a robust pipeline and shelved titles from 2024.
Price Action: AMC shares traded higher by 8.42% at $5.08 at last check Thursday.
Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today!
Photo via Shutterstock

What's Going On With AMC Entertainment Stock On Thursday?

Imax Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IMAX#NYSE">IMAX</a>) reported its <a target="_blank" href="https://www.benzinga.com/pressreleases/24/07/n39954668/imax-corporation-reports-second-quarter-2024-earnings-results" rel="noreferrer noopener">second-quarter financial results</a> before the bell Thursday. The stock gained after the print. Here&#8217;s a&nbsp;look at the highlights.&nbsp;
The Details:
Imax reported quarterly EPS of $0.18, which quashed the <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $0.07</a>.
The quarterly sales were $88.96 million, down 9% year over year, beating the analyst consensus estimate of $76.01 million.&nbsp;
Content Solutions revenues of&nbsp;$35 million&nbsp;grew by 12% year-on-year, driven by the sale of the commercial and streaming rights of &#8220;The Blue Angels&#8221; documentary.
Technology Products and Services revenues decreased 20% year-on-year to&nbsp;$51 million due to&nbsp;lower box office tied rental revenues and fewer sale and hybrid installations.
The company reported 24 Imax system installations in the quarter, up 20% year over year, and 87 signings for new and upgraded IMAX systems, up 89% year over year.&nbsp;
Rich Gelfond, CEO of IMAX. &#8220;The second quarter offered strong evidence that we are at in inflection point in our business; we are on a tear with system sales activity, our system installations are up significantly, and the slate through 2026 is as strong as we&#8217;ve ever seen.&#8221;
&#8220;Our ongoing strategic network expansion will enable IMAX to fully capitalize on the tremendous film slate over the next several years — featuring new releases from some of our most successful filmmaking partners and studio franchises, as well as a record of at least 14 films shot with IMAX cameras in 2025.&#8221;&nbsp;
Imax raised its Imax system installation guidance to 130 &#8211; 150 for the full year 2024 versus 128 for the full year 2023.
IMAX Price Action: Imax shares are up 9.62% at $19.55 at the last check on Thursday.
Photo via Wikimedia Commons

Guidance

Why Imax Stock Is Soaring On Thursday

UPDATE: Imax Q2 2024 Adj EPS $0.18 Beats $0.07 Estimate, Sales $89.00M Beat $76.01M Estimate

WIIM

Imax shares are trading higher after the company reported better-than-expected Q2 sales results.

Auxly Cannabis Group (TSE:XLY) has released an update. Auxly Cannabis Group Inc., a leading Canadian cannabis products company, will release its fi...

Auxly Cannabis Announces Q2 2024 Earnings Release Date

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Although it is always a good idea to monitor volume change and price resilience, some stocks &mdash; especially those categorized as overhyped stocks to sell when they reach new highs &mdash; have more fishy fundamentals than others, particularly if there is a possibility of a recession.



The global equity sell-off on Monday certainly hinted at a hard landing scenario. Citi (NYSE:<a href="https://investorplace.com/stock-quotes/c-stock-quote/">C</a>) economist Andrew Hollenhorst wisely noted that &ldquo;Once you start to worry about [a] recession, you are usually in a recession.&rdquo;



Despite interest rate cuts now more firmly on the table, with the first one at 68.5% probability in September, it will take a while for cheaper capital to bolster the equity market.



In the meantime, investors should reconsider their portfolio picks to see if any fit the overhyped stocks to sell bills. 



<h2>Imax (IMAX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/imax-stock-1-300x169.jpg" alt="the exterior of an Imax theater"><div>Source: imageAllan / Shutterstock.com</div></div>Synonymous with premium movie experience, the Canadian IMAX (NYSE:<a href="https://investorplace.com/stock-quotes/imax-stock-quote/">IMAX</a>) is a global brand across theater chains such as AMC (NYSE:<a href="https://investorplace.com/stock-quotes/amc-stock-quote/">AMC</a>) and Cineworld. Through film licensing and proprietary deployment of an immersive audio/visual system, Imax&rsquo;s fortunes rely on entertainment.



And therein lies the problem. Even before 2020&rsquo;s lockdowns, there has been a noticeable trend of entertainment shifting from public to private. Social media, cheap large TVs, lower quality movies, high ticket prices, inflation, streaming services and degraded social cohesion all compound on declining movie attendance.



Although movies like &ldquo;Deadpool &amp; Wolverine&rdquo; sometimes buck the trend, the overall trajectory is in decline. Compared to 2023, there were 11.47% fewer <a href="https://www.the-numbers.com/market/" target="_blank">tickets sold</a> in 2024. With the emergence of AI art, it is not difficult to see a further shift from public to private entertainment in the future, which would exclude Imax&rsquo;s bottom line. 



In July&rsquo;s Q2 2024 earnings, Imax reported a 9% decline in revenue with a 57% decline in net income year-over-year, from $8.4 million to $3.6 million. With expectations low, Imax managed to beat the negative earnings per share (EPS) consensus of $0.02 at a positive $0.07 EPS. 



With a 20% boost over the last 30 days, IMAX stock is now priced at $20.08. However, taking into account the aforementioned trends, it is more likely that the technically positive Q2 report will fail to keep the momentum. Likely reverting to the 52-week average of $16.90 or even lower makes IMAX one of the top overhyped stocks to sell.&nbsp;



<h2>Fortinet (FTNT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/08/ftnt1600-300x169.png" alt="Fortinet company logo displayed on mobile phone screen. FTNT stock"><div>Source: Piotr Swat / Shutterstock.com</div></div>At a relative strength index (RSI) of 73, Fortinet (NASDAQ:<a href="https://investorplace.com/stock-quotes/ftnt-stock-quote/">FTNT</a>) is likely overbought. Over the week, FTNT stock is up nearly 22%, going against the wider market grain. This is a result of positive <a href="https://investor.fortinet.com/quarterly-earnings" target="_blank">Q2 earnings</a> delivered on August 6th. 



The cloud-based cybersecurity company reported 11% growth year-over-year to $1.43 billion and net income by 43% to $379.8 million. In contrast, Fortinet&rsquo;s free cash flow decreased 27% year-over-year to $318.9 million.



This divergence is somewhat predictable as the company aims to become the leading Secure Access Service Edge (SASE) supplier, especially after the CrowdStrike (NASDAQ:<a href="https://investorplace.com/stock-quotes/crwd-stock-quote/">CRWD</a>) debacle.



However, a forward price-to-earnings ratio (P/E) of 38 is on the higher side in Fortinet&rsquo;s uphill battle to tackle Palo Alto Networks (NASDAQ:<a href="https://investorplace.com/stock-quotes/panw-stock-quote/">PANW</a>), Cisco (NASDAQ:<a href="https://investorplace.com/stock-quotes/csco-stock-quote/">CSCO</a>) and others that bundle cybersecurity solutions on a single platform.



Moreover, in a more severe recession scenario, Cisco is likely to come on top as a firewall infrastructure provider for larger organizations. On the other hand, Fortinet caters more to small to medium-sized businesses (SMBs) that lack equivalent financial cushions.



Priced at $69.93, FTNT stock is above its 52-week average of $60.82, getting close to its all-time high of $80.28 per share. Investors should consider FTNT stock as a potential exit asset, with a caveat to keep Fortinet as an exposure candidate during the next major price correction.



<h2>Dropbox (DBX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/dropbox_dbx_stock_dbx1600-300x169.jpg" alt="an image of the dropbox (DBX) website displayed on a smartphone screen"><div>Source: Allmy / Shutterstock.com</div></div>Dropbox (NASDAQ:<a href="https://investorplace.com/stock-quotes/dbx-stock-quote/">DBX</a>) cloud storage and file-sharing services priced in subscription tiers. However, one has to question if such a business model is ultimately sustainable.



Namely, if both Alphabet&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/goog-stock-quote/">GOOG</a>, NASDAQ:<a href="https://investorplace.com/stock-quotes/googl-stock-quote/">GOOGL</a>) Google Drive and Microsoft&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) One Drive can provide the same service as a way to entice users into their wider ecosystem of apps, how can Dropbox compete as a solo service without such an ecosystem?



Throughout 2024, financial figures appear to provide an answer. In Q1 earnings, Dropbox&rsquo;s year-over-year revenue increased by only 3.3%, with a flatlined paying-user <a href="https://thetradinganalyst.com/what-is-buying-power/#:~:text=In%20the%20first%20quarter%2C%20Dropbox%20saw%20a%20modest%203.3%25%20year%2Dover%2Dyear%20revenue%20growth%2C%20with%20paying%20users%20increasing%20slightly%20from%2017.90%20million%20to%2018.16%20million." target="_blank">growth of 18.16 million</a> compared to 17.90 million in the year-ago quarter.



Although the company&rsquo;s net income increased from $69 million to $132.3 million, the company suffered user backlash during 2024. In addition to the security vulnerability to Dropbox Sign in April, the company will cease desktop support for older Windows versions as of October 22nd.



That is not a compelling move for a company in a vulnerable position. Year-to-date, DBX stock is down 26%. Priced at $21.68, DBX shares are under the 52-week average of $26.02 and close to its 52-week low point of $20.68 per share. Considering Dropbox fundamentals, this is a solid exit point for DBX as one of the overhyped stocks to sell.



On the date of publication, Shane Neagle did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://protect-us.mimecast.com/s/XtC3C1wq33iErOvYSGOsXg?domain=investorplace.com/">Publishing Guidelines.</a>



On the date of publication, the responsible editor held a long position in GOOG.
<div>Shane Neagle is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget AI... THIS Technology Is the Future&rdquo;</a>
					</li>
									</ul>
The post <a href="https://investorplace.com/2024/08/3-overhyped-stocks-to-sell-in-august-before-they-crash-burn/">3 Overhyped Stocks to Sell in August Before They Crash &amp; Burn </a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Overhyped Stocks to Sell in August Before They Crash & Burn

IMAX (IMAX) has released an update. Constellation Software Inc. reported significant financial growth for the second quarter of 2024, with a 21% in...

Constellation Software Inc. Reports Strong Q2 Growth

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
The recent market sell-off has felt rather painful. It&rsquo;s certainly been a while since we&rsquo;ve witnessed stocks falling into an extended losing streak. Additionally, the concentration of selling in the tech sector is another reason why many newer and beginning investors (many of whom are heavy in the tech and AI names) feel like we&rsquo;ve been through a bear market when the S&amp;P 500 hasn&rsquo;t even officially entered a correction (a 10% decline) just yet.



Only time will tell if the past week of relief gains is the start of a new trend or if September will see us hit new lows. Regardless, some hard-hit stocks are starting to get cheap after the recent pummelling. So, if you still like tech and the AI theme, perhaps the latest market sell-off is a great time to act. Here are three stocks to buy on the cheap after the latest plunge.



<h2>Corning (GLW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/glw-stock-1-300x169.jpg" alt="the corning (GLW) logo and homepage displayed on a mobile phone"><div>Source: madamF / Shutterstock.com</div></div>Corning (NYSE:<a href="https://investorplace.com/stock-quotes/glw-stock-quote/">GLW</a>) was in melt-up mode back in early July, eventually leading to a painful downfall as <a href="https://investorplace.com/industries/technology/">tech stocks</a> rolled over. Though GLW stock has since recovered some ground, they&rsquo;re still down 15% from their 52-week highs. I&rsquo;m in the camp that views the sudden drop in Corning shares as a golden buying opportunity. After all, the data center opportunity hasn&rsquo;t really gone anywhere.



Deutsche Bank <a href="https://seekingalpha.com/news/4131057-corning-upgraded-to-buy-at-deutsche-bank-on-likely-double-digit-growth?source=apple_news%253Anews">upgraded</a> GLW stock to a Buy from Hold in late July, calling for growth to accelerate in the second half due to generative AI-driven demand and a &ldquo;ramp in [telecom] carrier activity.&rdquo;



The disappointing guidance that followed an otherwise solid quarter has really tempered investor enthusiasm. Perhaps it&rsquo;s time to step in as a contrarian before all things that touch the AI data center boom start making up for lost time again.



<h2>Microsoft (MSFT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/05/msft1600-2-300x169.png" alt="Wide angle view of a Microsoft sign at the headquarters for personal computer and cloud computing company, with office building in the background.. MSFT stock"><div>Source: VDB Photos / Shutterstock.com</div></div>Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) definitely stands out as one of the safer and most dominant AI companies to bet on for the long run. Still down 13% from all-time highs, the enterprise AI and cloud behemoth seems like a no-brainer buy on the dip. 



Though MSFT is still historically pricy at more 34.4x trailing price-to-earnings (P/E) ratio, the company remains committed to staying at the front of the AI marathon (as opposed to race). Recently, the $3 trillion giant <a href="https://news.microsoft.com/2024/08/08/palantir-and-microsoft-partner-to-deliver-enhanced-analytics-and-ai-services-to-classified-networks-for-critical-national-security-operations/">teamed up</a> with data analytics firm Palantir (NASDAQ:<a href="https://investorplace.com/stock-quotes/pltr-stock-quote/">PLTR</a>) to do some cloud and AI work for the U.S. government. The deal was a bigger needle mover for PLTR stock than it was for MSFT.



Either way, I view the move as another compelling driver for Microsoft that the market seems more than willing to ignore right now.



<h2>IMAX (IMAX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/imax-stock-1-300x169.jpg" alt="the exterior of an Imax theater"><div>Source: imageAllan / Shutterstock.com</div></div>The movie theater business may be in a nasty spot right now, but IMAX (NYSE:<a href="https://investorplace.com/stock-quotes/imax-stock-quote/">IMAX</a>) is arguably the best way to bet on the return of the silver screen. Indeed, IMAX and other large-format viewing experiences may come with a higher price of admission. But whenever there&rsquo;s a blockbuster hit, IMAX or something similar tends to be a must for moviegoers with enough extra cash in their pockets.



The Canadian company, which also designs and develops movie cameras and equipment, clocked in <a href="https://www.investing.com/news/stock-market-news/imax-shares-add-5-after-q2-earnings-and-revenue-beat-93CH-3536199">impressive</a> second-quarter results. With installation guidance for 2024 recently raised, things seem to be looking up for IMAX stock.



After dipping close to 6% from its 52-week high, the stock goes for 22.6x forward earnings, a fairly modest price to pay for a firm that could play a starring role come the next box office bounce.



On the date of publication, Joey Frenette held a long position in Microsoft. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://protect-us.mimecast.com/s/YUYqC31vVVI7KAkriDfKi6?domain=investorplace.com/">Publishing Guidelines</a>.



On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;
<div>Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.</div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2024/04/legendary-investor-predicts-forget-a-i-this-technology-is-the-future/?cid=MKT794457&amp;eid=MKT802109">Legendary Investor Predicts: &ldquo;Forget AI... THIS Technology Is the Future&rdquo;</a>
					</li>
									</ul>
The post <a href="https://investorplace.com/2024/08/3-stocks-to-buy-on-the-cheap-following-the-market-selloff/">3 Stocks to Buy on the Cheap Following the Market Selloff</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Stocks to Buy on the Cheap Following the Market Selloff

Auxly Cannabis Group (TSE:XLY) has released an update. Auxly Cannabis Group Inc. announced a historical Q2 in 2024, with a 33% increase in net reve...

Auxly Cannabis Hits Record Q2 Revenue and Profitability

Roth MKM analyst Eric Handler maintained a Buy rating on IMAX (IMAX – Research Report) today and set a price target of $27.00. The company's shares...

Roth MKM Keeps Their Buy Rating on IMAX (IMAX)

Lionsgate apologizes for fake film critic quotes in the Megalopolis trailer

Wedbush analyst Alicia Reese maintained a Buy rating on IMAX (IMAX – Research Report) today and set a price target of $26.00. The company's shares ...

Wedbush Remains a Buy on IMAX (IMAX)

Ad spending expected to shift as economic downturn looms -- analyst

IMAX ( ($IMAX) ) just unveiled an update. IMAX Corporation is set for a leadership change as Senior Vice President Elizabeth Gitajn plans to leave ...

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Get Our Top Trade Ideas Delivered Daily - 65% Off Now

Comments

Imax

Imax (IMAX) Forecast

Imax (NYSE:IMAX) Stock, Quote.Headers.trade-ideas