Shares of movie theater and streaming stocks saw a surge in value on Monday following the Writers Guild of America’s announcement of a tentative agreement to end the Hollywood writers’ strike.
The Writers Guild of America confirmed on Sunday that it had reached a preliminary agreement on all deal points related to a new 2023 Minimum Basic Agreement (MBA), pending the finalization of contract language.
In premarket trades, AMC Entertainment Holdings Inc., a popular “meme stock” darling, saw a 0.5% increase, while Cinemark Holdings Inc. rose by 2%.
Analysts have cautioned about the potential impact of the Hollywood writers’ strike on AMC. B. Riley Securities analyst Eric Wold specifically warned that the strike could potentially pose a risk to AMC’s 2024 film slate.
Similarly, streaming stocks also experienced gains in premarket trades on Monday. The tentative agreement to end the Hollywood writers’ strike provided a boost to companies such as Walt Disney Co., whose shares rose by 0.5%. Warner Bros. Discovery Inc.’s stock gained 2.1%, Paramount Global Inc.’s shares rose by 2%, Netflix Inc.’s stock experienced a 0.7% increase, and Endeavour Group Holdings Inc.’s shares were up by 0.3%.