MW These stocks could bask in the 'Glicked' glow as 'Gladiator II' and 'Wicked' open
By James Rogers
Eagerly anticipated movies 'Wicked,' based on the popular musical and 'Gladiator II,' the sequel to the hugely successful historical epic, open Friday
The big box-office story of last year was undoubtedly "Barbenheimer" as summer blockbusters "Barbie" and "Oppenheimer" dominated movie theaters.
Two of Thanksgiving's big releases are hitting theaters this week. "Wicked," from Comcast's $(CMCSA)$ Universal Pictures and starring Cynthia Erivo and Ariana Grande, and Paramount Pictures' $(PARA)$ "Gladiator II," starring Paul Mescal, are both scheduled for general U.S. release Friday. In a nod to the wildly successful "Barbenheimer" phenomenon, the movies' debut has been collectively dubbed "Glicked."
However, "Glicked" is unlikely to reach the reach the heady heights of "Barbenheimer," according to Benchmark analyst Mike Hickey. "'Wicked' and 'Gladiator II' debuting simultaneously as 'Glicked' have drawn comparisons to 2023's 'Barbenheimer,' though expectations are tempered," he wrote in a note released Thursday.
"Wicked" is projected to lead the weekend with over $100 million, according to Hickey, while director Ridley Scott's "Gladiator II" could reach $80 million, with the movies combining for "a strong but smaller" total than "Barbenheimer's" $244.4 million opening weekend. Nonetheless, this would still equate to a strong Thanksgiving box-office boost.
Related: The 'Barbenheimer' buzz may be over, but consumer enthusiasm for movies is still strong, says Cinemark CEO
Movie-theater chains AMC Entertainment Holdings Inc. $(AMC)$ and Cinemark Holdings Inc. $(CNK)$ will be big beneficiaries of a strong "Wicked" and "Gladiator II" opening weekend. "'Wicked' is already being described as 'a masterpiece,'" said AMC Chief Executive Adam Aron during the conference call to discuss the company's third-quarter results earlier this month.
"We are highly optimistic about a strong close to 2024," said Cinemark CEO Sean Gamble, during a conference call to discuss the company's third-quarter results last month. Gamble cited "Wicked" and "Gladiator II," as well as Walt Disney Co.'s $(DIS)$ "Moana 2," which opens Nov. 27, and "Mufasa: The Lion King," and "Sonic the Hedgehog 3," which hit theaters Dec. 20.
AMC shares are down 26.7% in 2024, while Cinemark's stock is up 128.8%.
"Wicked" was also discussed during the conference call for Target Corp.'s $(TGT)$ third-quarter results this week. Target's Chief Commercial Officer Richard Gomez described the retail giant as "the ultimate fan destination," for the film, pointing to more than 150 movie-inspired items spanning apparel, toys, beauty, food and home. "Nearly 70% of the items are available only at Target, including an apparel line created by the film's costume designer, Paul Tazewell," he said. Target also has "Wicked"-themed store displays and "shop-in-shops," Gomez said.
Target shares are down 14.6% this year.
Related: Target CEO says 'consumers continue to spend cautiously' amid triple-miss earnings report
In a note released last month UBS analyst Arpiné H. Kocharyan highlighted the impact of "Wicked" on toy maker Mattel Inc. $(MAT)$, which is offering a range of fashion dolls based on the movie. "Q4 will have Disney's 'Moana 2' and Universal's 'Wicked' in November, and management has shifted more advertising dollars into Q4, expecting more retail support and additional shelf space," she wrote.
However, Mattel had to apologize recently when the web address for a porn company was erroneously printed on "Wicked" dolls' packaging.
Mattel's stock is down 2.7% in 2024.
Related: AMC touts theater investment plan but faces balancing act, Wedbush says
-James Rogers
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(END) Dow Jones Newswires
November 21, 2024 16:28 ET (21:28 GMT)
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