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**Warner Bros.' "Barbie" and Universal's "Oppenheimer" Take Box Office by Storm**
The opening weekend success of Warner Bros.' "Barbie" and Universal's "Oppenheimer" has captured the attention of Wall Street. The two movies generated a combined $235.5 million in ticket sales, drawing huge crowds to theaters across the country. This success is especially significant as it demonstrates audiences' interest in fresh ideas rather than the usual stream of franchise films. Analysts believe this successful weekend could have a positive impact on Warner Bros. Discovery stock and neutral effects on Comcast's stock. On the other hand, Paramount's latest release, "Mission: Impossible," may have suffered from increased competition.
**Barbie's Impact on Entertainment Companies and Investors**
Legacy entertainment companies, including Warner Bros. Discovery and Comcast, are facing the challenge of rebounding from a bear market while also dealing with the transition to streaming and the ongoing Hollywood strikes. Warner Bros. Discovery shares have experienced a 34% increase since the beginning of 2023, while Universal parent Comcast has seen a 24% increase this year. In contrast, Paramount shares have underperformed the market with a year-to-date loss of nearly 8%. The positive box office performance of "Barbie" is seen as a much-needed win for Warner Bros. Discovery, following the underperformance of "The Flash." Mattel, the toymaker behind Barbie, is also hoping to benefit from the film's success. The company has plans for more blockbuster movies based on its intellectual property.
**The Market Impact of "Barbie"**
Investors have been keeping an eye on shares of Mattel, which rallied leading up to the release of "Barbie." The question for investors is how the buzz around Barbie will affect sales in the second half of 2023 and throughout 2024. Additionally, investors are looking to see if there are any revenue drivers for Mattel outside of toy sales that will be supported by the success of the movie. While early stock movements suggest that the market may not be as impressed with the box office performance as Hollywood is, Mattel shares have gained nearly 2% on Monday and 10% in July. Over a hundred companies, including Gap and Kohl's, have deals with Mattel to sell Barbie-themed products. Discount retailer Five Below has prominently displayed Barbie-themed merchandise, indicating a trend that could drive incremental traffic to their stores.
**Implications for Movie Theaters and IMAX**
The success of "Oppenheimer" has had positive implications for stocks connected to movie theaters, particularly IMAX. IMAX screens accounted for a significant portion of box office revenue, both domestically and globally. B. Riley analyst Eric Wold believes that IMAX is the best way to play the recovery of the global exhibition industry. The over-indexing of IMAX screens in the post-pandemic moviegoing environment demonstrates a structural improvement in consumer demand for the format. IMAX may also benefit from the Hollywood strikes if delayed releases prompt audiences to seek out local language titles on their screens. This trend could potentially be advantageous for movie theater chain AMC Entertainment, as they have more IMAX theaters than their competitors. However, investor focus was divided due to a Delaware judge's decision to block AMC's share conversion plan. Despite this, AMC's stock surged more than 30% on Monday.
In conclusion, the success of "Barbie" and "Oppenheimer" at the box office has garnered attention from Wall Street and highlighted audiences' interest in fresh and original ideas. The impact has been felt by entertainment companies such as Warner Bros. Discovery and Comcast, and investors are keeping a close eye on Mattel's stock. Additionally, the success of "Barbie" has resulted in increased sales of Barbie-themed products and presented opportunities for movie theaters and IMAX. Overall, these films have proven to be a much-needed win for the industry and could pave the way for future successes.
**"Barbie" and "Oppenheimer" Box Office Success: Hot Take on Impact for New Businesses**
The remarkable box office success of Warner Bros.' "Barbie" and Universal's "Oppenheimer" has broader implications, including potential opportunities for new businesses. These blockbuster movies have shown that audiences are hungry for fresh and original content, signaling a shift away from the saturation of franchise films. For entrepreneurs and new companies in the entertainment industry, this success story serves as a reminder that innovation and creativity can capture the attention of audiences and generate substantial revenue.
The triumph of "Barbie" has not only been significant for Warner Bros. Discovery and Comcast, but also for Mattel, the toymaker behind the iconic doll. New businesses in the toy industry can take inspiration from Mattel's success in leveraging intellectual property to create blockbuster movies and further capitalize on their brand. With the renewed interest in Barbie, there are opportunities for collaborations, licensing deals, and product partnerships with companies like Gap, Kohl's, and Five Below, which have already struck deals with Mattel. Entrepreneurs can consider developing strategic partnerships with established brands to bring synergistic products or experiences to market.
Moreover, the positive implications for movie theaters, especially IMAX, exhibit the potential for new business ventures in the exhibition industry. Entrepreneurs looking to capitalize on the recovery of the global exhibition market may explore innovative concepts that enhance the moviegoing experience. From immersive technologies to unique cinema designs, there is room for businesses to disrupt and contribute to the evolving landscape of movie theaters.
In summary, the overwhelming success of "Barbie" and "Oppenheimer" at the box office offers valuable lessons and potential openings for new businesses. Entrepreneurs can embrace the demand for fresh ideas and original content, create strategic partnerships, tap into the power of intellectual property, and explore innovative concepts within the entertainment industry. By doing so, they can position themselves for success in an evolving market driven by audience preferences for new and exciting experiences.
Article First Published at: https://www.cnbc.com/2023/07/24/barbenheimer-box-office-success-can-boost-these-stocks.html
