Please ensure Javascript is enabled for purposes of website accessibility

Why Amusement Park Stocks Sank Today

By Joe Tenebruso - Mar 5, 2020 at 7:25PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The COVID-19 coronavirus epidemic could have a brutal impact on the industry.

What happened

Shares of Six Flags (SIX 1.23%), SeaWorld (SEAS -1.17%), and Cedar Fair (FUN 1.54%) all plunged more than 10% on Thursday, as the number of people infected with COVID-19 -- the disease caused by the novel coronavirus -- continues to rise.

So what

There are now more than 97,000 confirmed cases of COVID-19 around the world, and over 3,300 people have died from the disease. Health officials warn that the outbreak is likely to spread, with many more people potentially becoming ill in the coming weeks.

Amid this frightening backdrop, amusement park stocks fell sharply on Thursday. Investors are rightfully questioning whether people will want to visit the crowded parks operated by Six Flags, Cedar Fair, and SeaWorld at a time when COVID-19-related fears are mounting.

A person in a business suit looking at downwardly sloping charts

Amusement park stocks have been hit hard by coronavirus fears. Image source: Getty Images.

Now what 

Should coronavirus concerns result in a significant decline in season and daily pass sales at their parks, Cedar Fair, Six Flags, and SeaWorld could experience a sharp drop in profits this year. Worse still, if concerns regarding disease transmission extend beyond this year, amusement park operators may face a challenging road ahead.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Six Flags Entertainment Corporation Stock Quote
Six Flags Entertainment Corporation
SIX
$23.13 (1.23%) $0.28
Cedar Fair, L.P. Stock Quote
Cedar Fair, L.P.
FUN
$43.46 (1.54%) $0.66
SeaWorld Entertainment, Inc. Stock Quote
SeaWorld Entertainment, Inc.
SEAS
$46.36 (-1.17%) $0.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.