IMAX Soars On Blockbuster Weekend

IMAX Soars On Blockbuster Weekend

Happy weekend folks! 

There were a number of reasons for our stocks moving this week. From a big blockbuster weekend at the movies, general love for a company’s future ambitions, another crackdown from China, and ongoing growth concerns, there was a good bit to get through. 

If all this short-term noise is difficult for you to digest, remember you can always step back and look at the bigger picture of your investments. As cliché as that sounds, now might be the perfect time to appreciate your favorite company's long-term potential. For more insight on how to do this, give our recent Daily Insight a look over. 

Let’s get down to the big stories.

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

IMAX (IMAX) +10.8%

Upstart Holdings (UPST) +8.4%

Zendesk (ZEN) +7.0%

Atlassian (TEAM) +6.3%

Copart (CPRT) +6.3%

Moving Down ⬇️

Wynn Resorts (WYNN) -16.9%

Trupanion (TRUP) -8.8%

Baozun (BZUN) -8.3%

Peloton Interactive (PTON) -8.3%

Zoom Communications (ZM) -7.7%

What investors need to know 

IMAX (IMAX) +10.8%

An impressive second-weekend showing of Marvel flick, ‘Shang-Chi and the Legend of the Ten Rings’, pointed towards future big-screen results for IMAX. Shares closed 8% higher on Monday could be in for more gains as it hasn’t even been released in China yet, where the film was largely based. China is an important market for IMAX as it collected 54% of its total sales from the region over the last four quarters. In the movie’s premiere weekend, IMAX’s screenings accounted for 9.4% of its domestic box office, and figures are expected to be just as good as last weekend. This success was great news as it showed that moviegoers want the full IMAX experience. In more good news, Disney also announced that it’s releasing the rest of its 2021 movie slate in theatres.  

Atlassian (TEAM) +6.3%

The software firm from Down Under finally hit the $100 billion valuation mark this week as it continues to benefit from the work-from-home trend. This transition has increased demand for its project management tools JIRA, Trello, and its document sharing platform Confluence. Shareholders are also focused on Atlassian’s ongoing transition to the cloud. While the company might find it challenging to move over some of its bigger customers to the cloud, the revenue opportunities are definitely worth it. Atlassian shares have been rising steadily all year but got a nice bump after its last earnings report showed a 29% increase in yearly sales, and predicted more growth to come. 

Wynn Resorts (WYNN) -16.9%

Casino stocks with major exposure to Macau crashed this week in China’s latest regulatory crackdowns. Shareholders in casino operators with exposure in Macau — known as the "Las Vegas of Asia" — cashed in their chips after the government proposed an overhaul and review of the gaming licenses of Wynn and rival casino operators. Investors are concerned that either these companies won’t be able to operate or will have harsh restrictions imposed on them. Wynn only has two casinos in Macau, but they accounted for 46% of its total operating revenue in Q2, meaning that if the licenses are revoked, the stock might be in trouble.  

Peloton Interactive (PTON) -8.3%

While a Peloton bike might be high on consumers' wishlist for the holiday season, the stock continues to lose favor with investors. The fitness equipment maker has been on a rollercoaster this year as product recalls mount up, pulling shares back down to earth after the hyper-growth it experienced during the pandemic. Peloton is battling decelerating growth and an expected slowdown in user additions as the world reopens. Trading at roughly 6x forward revenue, the stock might not be cheap, but it has a trick up its sleeve — it’s getting into the sports apparel business, which should boost revenue. 

Zoom Communications (ZM) -7.7%

Ongoing growth concerns are still plaguing Zoom, despite the company unveiling new features at its Zoomtopia conference this week. In its Q2 report, the firm guided for only 31% growth in the next quarter as people begin to travel again, which investors have latched on to as a reason to sell. Zoom’s new additions — which include ‘Zoom Whiteboard,’ a digital-canvas collaboration tool; ‘Zoom Video Engagement Center,’ where users can consult with industry experts, like healthcare visits; and ‘Zoom Rooms Smart Gallery’ which offers separate video feeds of in-office users — should excite shareholders though. Zoom is boosting its offerings as it knows remote and hybrid work models are here to stay.

NicoleNicole

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