Friday 28 October 2011

Can a movie that does well in the box office increase a stock?

Can a movie that does well in the box office increase a stock?
If a movie makes upward of $500k in box office, or has a huge opening weekend, will the production company's stock increase?
if so, how soon after it comes out?

Ans:
Depends on how much they spent on making the movie ($500K is actually a pretty weak performance for anything outside small, independent releases), and how much they were expecting to make.

If it beats expectations, a bump in stock price would occur as early as the Monday after release.

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