Why AMC Entertainment Holdings, StoneMor Partners, and XPO Logistics Slumped Today
Monday was a quiet start to the week on Wall Street, as major benchmarks eased downward from Friday's close. The S&P 500 and Dow Jones Industrials traded on either side of the unchanged line, flirting with making further advances into record territory. Yet even though a strong economic report from China gave international investors further optimism, gains evaporated in the U.S. as oil prices slipped and investors waited to see how the opening days of the new earnings season would go. Bad news from some companies also had a negative impact on investor sentiment, and AMC Entertainment Holdings (NYSE: AMC), StoneMor Partners (NYSE: STON), and XPO Logistics (NYSE: XPO) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of AMC Entertainment Holdings dropped 10% in the wake of negative comments over the weekend from journalists covering the movie theater operator. Barron's released a report noting that AMC and its peers in the theater business have missed out on the bull market in 2017, suffering substantial losses because of rising competition from at-home entertainment options and a lack of original, inspired content from Hollywood. Particularly disturbing is the idea that movie studios might choose to bypass theaters entirely, offering pay-per-view-like options to allow home viewers to pay ultra-premium prices to watch movies at home within days of their initial release. Given all the capital improvements that AMC and its peers have made to modernize theaters and make them more attractive as destinations, that threat could jeopardize their return on substantial investments, and shareholders seemed uncertain how the theater industry will respond.
Image source: AMC Entertainment Holdings.
Source: Fool.com
