Shares of amusement park company Six Flags Entertainment (SIX 3.22%) jumped as much as 11.1% in trading on Wednesday after reporting fourth-quarter 2020 results. Shares were off their highs but still up 4.1% at 3:40 p.m. EST.
Fourth-quarter revenue dropped 58% to $109 million, and net loss for Six Flags was $86 million, or $1.00 per share. On the plus side, spending per guest jumped 17% to $47.00, and management is confident that business will continue to improve in 2021.
Management is still planning to open all parks and says there is pent-up demand for the company's attractions. When customers do return, efficiency and technology improvements at parks could result in higher margins and profitability than before the pandemic.
Anything pointing in the direction of good news is being seen as a positive by Six Flags investors today. The company has been hit harder than most by the pandemic but could turn itself into a growth stock if demand does indeed surge this summer. That's what investors are betting on today, and with vaccines rolling out quickly, it's a good time to be bullish on entertainment stocks.