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.
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.
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.
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.
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.