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Why Imax Stock Jumped More Than 8% Today

By Anders Bylund – Sep 13, 2021 at 7:15PM

Key Points

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The latest Marvel movie kept big-screen showings packed, which bodes well for this company's upcoming quarterly reports.

What happened

Shares of larger-than-life cinema technologist Imax (IMAX 5.60%) closed Monday's trading 8.4% higher, having risen 10.2% earlier in the day. The stock rose thanks to an impressive second-weekend showing of Walt Disney's (DIS 0.85%) latest superhero movie.

So what

Shang-Chi and the Legend of the Ten Rings dominated the box office in its second week, collecting domestic ticket sales of $35.8 million. By comparison, Free Guy from another Disney-owned subsidiary, 20th Century Studios, landed in second place with a domestic showing worth $5.8 million. Shang-Chi also pulled in $55.8 million of international ticket sales this weekend. Moreover, the title has not yet premiered in China, which is generally one of Marvel's most fruitful overseas territories and a good fit for the martial arts themes and backstory of the titular character. In particular, Imax is looking forward to a strong Shang-Chi showing in China. The company collected 54% of its total revenue from the Greater China market over the last four quarters.

A movie director's clapper resting on a bed of hundred-dollar bills.

Image source: Getty Images.

Now what

Action-packed Marvel titles are Imax's bread and butter, giving investors another reason to get excited about Shang-Chi 's sustained success. Imax screenings accounted for 9.4% of the domestic box office and 9.1% of international ticket sales in the record-setting premiere week. Looking beyond the financial impact of this single movie, the flourishing Marvel title points to robust big-screen results in the long run. The immersive Imax experience is not easy to replicate in your living room, which gives this company an edge over the movie theater industry as a whole. That being said, Imax shares are still trading 34% below the 52-week highs that were set in early March.

Anders Bylund owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool has a disclosure policy.

Stocks Mentioned

IMAX Stock Quote
$17.72 (5.60%) $0.94
Walt Disney Stock Quote
Walt Disney
$99.43 (0.85%) $0.84

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