What happened

Shares of Lions Gate Entertainment (NYSE:LGF-A) sank 29.3% last month, according to data from S&P Global Market Intelligence. The entertainment company's stock fell due to concerning developments for its theatrical business and turbulence in the broader market. 

LGF.A Chart

LGF.A data by YCharts.

The movie industry has faced extreme pressure as conditions related to the coronavirus crisis resulted in temporary closures for theaters and dismal attendance even after they reopened. A surge of new confirmed COVID-19 cases in October once again hurt chances for a rebound in the near term, and Lions Gate's shares steadily declined all month.  

An empty movie theater.

Image source: Getty Images.

So what

Lions Gate's theatrical business has suffered diminished performance and an uncertain outlook as a result of the coronavirus pandemic. The company has also faced pressure from cord-cutting trends, which have accelerated pay-TV subscriber erosion for the company's Starz premium cable channel. Last month's dramatic rise in new coronavirus cases hurt its chances for a speedy recovery, and investors sold out of the stock. 

Now what

Lions Gate has posted gains in conjunction with momentum for the broader market early in November's trading. The company's share price is up roughly 4% in the month so far.

^SPX Chart

^SPX data by YCharts.

Lions Gate is scheduled to report fiscal Q2 results after the market closes today. The company has not given detailed guidance for the quarter, but management said in the last earnings call that it's making progress on transitioning the business to a greater focus on streaming. 

Lions Gate Entertainment has a market capitalization of roughly $1.5 billion and is valued at less than half of this year's expected sales.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.