basketball, ball, sport-562615.jpg

Today in the Market (1/5/2024)

Good Morning! On Friday, stocks experienced volatility, ending their longest streak of straight weekly gains since 2004. This was prompted by fresh economic data that further fueled the discussion on when the Federal Reserve may reduce interest rates.

Even though the week of returns ended the streak, the main indexes still finished today in the green, with the S&P 500, Dow Jones, and Nasdaq up by 0.18%, 0.07%, and 0.09%, respectively.

A NEW LOW...

The theater chain AMC (AMC) had a significant decline, reaching a new record low by closing the session at $5.17 per share, with the stock having seen a decline of almost 15% in the last four trading sessions. The stock has seen a continuous decline as the corporation persists in issuing further shares, reducing the value of investors’ holdings, all while facing an imminent debt burden.

So what causing this new decline? AMC recently announced that it has engaged in a series of private negotiations to swap about 3.25 million Class A shares, valued at $22,500,000, in order to repay its outstanding notes due in 2026. On top of that, AMC said that it has the option to participate in such deals in the future, but it is not required to do so.

Let’s look back on AMC! The stock peaked during the meme era by hitting an all-time high of $339.05 in early June 2021. Since August 2023, the stock has seen a decline of about 80%, dropping from a trading price of just over $40 per share. So, is there any hope? Well… AMC is anticipated to disclose its financial performance for the fourth quarter on January 28th, which the company exceeded its revenue projections for the third quarter due to the success of the movies “Barbie” and “Oppenheimer.”

HUGE BROADCAST DEAL!

basketball, girls, conference-1608867.jpg

The NCAA revealed an exciting $920 million broadcast agreement with ESPN, which specifically emphasizes women’s sports (along with tennis and volleyball, which are offered for both men and women, along with several other sports). ESPN will also be broadcasting Division II and III basketball games for the first time.

Let’s break down this huge deal! According to the NCAA, the women’s March Madness tournament, which makes up about 57% of the contract and costs $65 million a year, is the main driving force behind the eight-year agreement. Why now? The current valuation of the association in ESPN’s latest deal is tenfold higher than its previous valuation. This significant increase may largely be due to the highly anticipated championship game of the previous year, which attracted a record-breaking audience of about ten million people.

What else? Industry executives have speculated that the NCAA may separate women’s basketball into an independent agreement, similar to what it has done with men’s basketball, due to the sport’s growing profitability and popularity. However, the NCAA decided to keep women’s basketball as part of the package, most likely due to the more cutthroat market for sports media rights that has resulted from a decline in traditional television viewership.

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?