Avatar Sequel Helps Imax Bulls Make the Case That Cinema’s Not Dead
- The first Avatar remains the highest-grossing film in Imax
- Investors tout an attractive valuation and market position
This article is for subscribers only.
The 2009 hit film Avatar was a watershed event for Imax Corp., and the release of the long-awaited sequel has underlined what investors see as a strong case for shares of the large-screen theater chain at a time when movie-going is out of fashion.
Imax’s shares have fallen less this year than those of rivals, benefiting from an environment that’s split between smaller films that increasingly go direct to streaming and blockbusters, where audiences have shown a willingness to pay up for a more immersive experience. The release Friday of Avatar: The Way of Water could prove to be the year’s foremost example of the latter.