The Oscars were so much fun to watch this year! Meryl Streep was as captivating as usual, Jack Nicholson was funny and quirky, Ben Affleck was strong and funny and excited, and Jennifer Lawrence was stunning and graceful (except on the stairs!).
I felt a little guilty watching the Oscars as my blog page for Fox on Stocks sat empty, but then I started jotting out this blog about how winning the Oscar could impact a movie studio’s stock price. I’d already delved into the subject a couple of weeks ago when I wrote the blog, “Movie Studio Stocks: How Film Releases Affect Stock Prices”.
How Oscars Affect Stock Price
Today’s blog is similar, but I found some very cool stats about the actual financial impact of winning an Oscar on the film’s bottom line. The full report can be found in The Value of an Oscar post over at boxofficequant.com.
The report also concludes that the Oscar win bumps up revenue, whereas an Oscar nomination alone generally does not.
Films that won Academy Awards last night and their ticker symbols:
|Best Picture||Argo||Time Warner $TWX|
|Best Director||Life of Pi||News Corp. $NWS|
|Best Actor||Lincoln||Disney $DIS / Universal $CMCSA|
|Best Actress||Silver Linings Playbook||Weinstein Co. (Privately Held)|
|Supporting Actor||Django Unchained||Weinstein Co. (Privately Held)|
|Supporting Actress||Les Miserable||Universal $CMCSA|
|Original Screenplay||Django Unchained||Weinstein Co. (Privately Held)|
|Adapted Screenplay||Argo||Time Warner $TWX|
|Best Editing||Argo||Time Warner $TWX|
|Original Score||Life of Pi||News Corp. $NWS|
|Original Song||Skyfall||Sony $SNE|
|Sound||Les Miserable||Universal $CMCSA|
|Sound Editing||Zero Dark Thirty||Sony $SNE|
|Sound Editing||Skyfall||Sony $SNE|
That said, though, remember a couple of things:
- First, just because a movie wins the award and the movie studio company benefits with increased revenue, it does not necessarily mean its stock price will go up. Remember Fox Tip # 001, the stock market is illogical.
- Second, these are not stock tips, nor do I currently own a position in any of these stocks. Use your own judgment and focus on your style of investing, whether it’s long-term investing, intermediate-term investing or trading, or short-term trading. You might even sell one of these short based on expectations for an Oscar win that were not met, but again, use your own judgment.
- Third, it may be interesting to simply study the impact over several years to see if there is a direct correlation between Oscar winner and stock price one day, two days, and five days after the Oscars. So much research to do, so little time.
Enjoy checking out these movie stocks this week and catch up on any movies on the list you haven’t seen yet. I know I’ll be doing just that. See you at the movies
Many Happy Returns,