‘Oscars’ for Investors – Hollywood Stocks to Watch

Did you catch the Oscars last night? Hollywood got together in all its glamor and glitz for its celebratory awards ceremony – The Academy Awards. Of course, most people were paying attention to red carpet fashion, or to see which performances won the evening.

So congrats to the big winners from last night, Mikey Madison and Adrien Brody, for their best acting wins, and to Anora for taking home the best picture and best director prizes.

However, it’s worth remembering that while the Oscars exist to celebrate the art and artistry of filmmaking, Hollywood is big business. In 2024, the global box office pulled in about $32B in revenue. Winning an Oscar for best picture, apart from the prestige it brings, can often translate into additional revenue for the film.

So, to celebrate Hollywood’s big night, we are bringing our own unique insights and have seven stocks for you to keep your eye on. Which of these do you think will be a star performer in 2025?

Hollywood Stocks

Sony Group Corporation (SONY) (“Outperform” – 78)

Sony, based in Tokyo, is a global leader in electronics, gaming, and entertainment. Its third-quarter 2024 sales grew 18% YoY, driven by gaming and network services, while PlayStation’s user base reached a new high. The company remains well-positioned for growth with strong performance in music and entertainment.

Fun Fact: Sony’s The Social Network (2010) won three Academy Awards, including Best Adapted Screenplay.

IMAX Corporation (IMAX) (“Outperform” – 80)

IMAX, based in Mississauga, Canada, designs immersive cinema technologies and operates theaters worldwide. It saw a 48% rise in adjusted EBITDA and a 59% increase in adjusted EPS in Q4 2024, driven by strong box office performance, including over $120 million during Chinese New Year. The company is focused on expanding its global network and has exclusive content deals, with projections of over $1.2 billion in 2025 box office grosses.

Fun Fact: Avatar (2009) and The Dark Knight (2008), both Oscar-nominated, were showcased in IMAX theaters, enhancing the immersive experience.

The Walt Disney Company (DIS) (“Hold” – 73)

Disney, based in Burbank, California, is a global entertainment giant with revenue from media networks, parks, studios, and consumer products. It delivered strong quarterly results, boosted by top-tier box office performance, streaming growth, and strong ESPN ratings, while its Experiences segment projects 6-8% growth. Challenges persist in sustaining growth in premium offerings and competition in evolving markets.

Fun Fact: Frozen (2013) won two Academy Awards, including Best Animated Feature.

Netflix, Inc. (NFLX) (“Hold” – 70)

Netflix, based in Los Gatos, California, is a global streaming service with revenue from subscription fees and original content production. It showed strong Q4 2024 growth with significant subscriber increases, driven by diverse global content like Squid Game Season 2, and positive momentum in ad-supported plans. The company continues to expand its original programming and international reach, while staying cautious about full-season sports rights.

Fun Fact: Roma (2018) won three Academy Awards, including Best Cinematography, a significant achievement for Netflix in the Oscar race.

Cinemark Holdings, Inc. (CNK) (“Buy” – 83)

Cinemark, based in Plano, Texas, operates movie theaters worldwide and generates revenue from ticket sales, concessions, and partnerships with film distributors. In 2024, the company saw strong recovery, with a 28% revenue increase in Q4, driven by strong box office results and premium format contributions. With $1.1 billion in cash and $315 million in free cash flow, Cinemark is well-positioned for continued growth in 2025.

Fun Fact : Cinemark was one of the major theater chains that showcased La La Land (2016), which won six Academy Awards.

Lions Gate Entertainment Corp. (LGF.A) (“Sell” – 49)

Lions Gate, based in Santa Monica, California, produces and distributes films and television, earning revenue through theatrical releases, home video sales, and streaming. Despite growth in motion pictures and television, its heavy $2.4 billion debt and challenges at Starz, particularly with its declining linear subscriber base, limit its potential. The company’s financial strain and restructuring efforts cloud its outlook.

Fun Fact : La La Land (2016), produced by Lions Gate, received 14 Oscar nominations, one of the most nominated films in history.

Warner Bros. Discovery, Inc. (WBD) (“Underperform” – 58)

Warner Bros. Discovery, based in New York City, generates revenue through film, TV production, advertising, and subscription services like HBO Max and Discovery+. The company showed positive momentum in its Direct-to-Consumer business, but struggles in its studio and networks segments, including poor film performance and declining network advertising revenues, cloud its outlook. While free cash flow improved, high leverage and ongoing challenges limit near-term growth.

Fun Fact: Joker (2019) won Best Actor (Joaquin Phoenix) and became the highest-grossing R-rated film of all time.

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