Pink's Bottom Line on Media, Money and Sports

Movie theaters, fintech and the New Orleans Saints

In today’s newsletter, I discuss the movie theater business, a lofty valuation for a fintech firm and the NFL’s New Orleans Saints.

MEDIA: AMC Entertainment Holdings

The stock of AMC Entertainment Holdings, the largest movie theater company in the United States, soared today after the company said in a press release Friday that two of its flagship theaters in Los Angeles are reopening.

The movie theater business has been hit hard because of the pandemic, and AMC’s reopening of these two key locations is a sign that the movie theater business is perhaps at the beginning stages of a recovery.

(Click here to read the company’s press release on these reopenings.)

Pink's Bottom Line

According to Box Office Mojo, theaters in the United States grossed about $16.7 million at the box office this past weekend, following grosses of $24.1 and $20.8 million, respectively, the previous two weekends.

While those box office numbers are a far cry from what the industry grossed before the pandemic began, they nonetheless indicate that moviegoers are gradually returning to theaters.

As such, the reopenings by AMC and the improving, albeit modest, domestic box office revenue suggest that the traditional theater business is finally doing better.

MONEY: Stripe Valuation

Stripe, a payments processing platform founded in 2010, said in a press release Sunday that it raised another $600 million, and the company said that puts its valuation at $95 billion.

To give some perspective on that valuation, publicly traded Capital One, a large bank holding company also known for its credit cards, has a market capitalization of about $61 billion.

Pink's Bottom Line

Stripe’s payment processing is used by many e-commerce companies, and e-commerce has surged during the pandemic.

It is the latest sign that the coronavirus pandemic impacts just about everything, including the valuation of a top fintech firm like Stripe.

Stripe said in its press release that it will use that additional capital it raised to expand its presence across Europe.

SPORTS: New Orleans Saints

Drew Brees, quarterback of the NFL’s New Orleans Saints, announced his retirement this weekend.

While his decision to retire was expected, it will still leave the Saints without its signal caller of the past 15 years and without the NFL’s all-time leader in passing yards.

The Saints will have to replace Brees as a starter, and it’s likely that two players from last season who were on the team’s roster — Taysom Hill and Jameis Winston — will compete for the starting job for next season.

Pink's Bottom Line

Hill filled in for Brees for part of last season when Brees was injured, and Hill led the team to a 3-1 record under his direction.

Winston, who lead the NFL in passing yards in 2019 when he was with the Tampa Bay Buccaneers, backed up Brees — and Hill for four games — last season.

While Winston is currently a free agent, I expect that he will sign again to play for the Saints.

Additionally, I expect Winston to win the starting quarterback job in New Orleans over Hill for this season, and I expect Winston to lead the Saints deep into the playoffs.

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Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)