Hot Stocks: Cinema Chain Rally; YMM jumps on earnings; PAGS falls

Stocks rose on Wednesday, helped by the release of minutes from the Federal Reserve’s last meeting, which indicated policymakers are considering slowing the pace of rate hikes. Progress building on the previous session’s gains came forward of the Thanksgiving holiday.

Theatrical chains participated in the rebound, helped by reports that Amazon (AMZN) plans to invest heavily in theatrical releases in the coming years. The news spurred names like AMC Entertainment (AMC), Cinemark (CNK), IMAX (IMAX) and National CineMedia (NCMI).

The list of notable winners also included Full Truck Alliance (NYSE:JMM), which posted double-digit percentage gains on earnings reports. BioMarin Pharmaceutical (BMRN) surged to a fresh 52-week high on favorable regulatory developments.

On the other end of the spectrum, PagSeguro (PAGS) saw a significant decline following the release of its financials.

sector in focus

Reports of a major engagement from Amazon (AMZN) gave a boost to shares related to the cinema business. The news led to gains at AMC Entertainment (AMC), Cinemark (CNK), IMAX (IMAX) and National CineMedia (NCMI).

According to Bloomberg, AMZN plans to spend $1 billion a year to produce 12 to 15 films for theatrical release each year. This will start in 2023 with a smaller number and build from there.

CNK is up nearly 13% on the news, while IMAX is up 9%. AMC rose 4%.

Outstanding Winner

On-road gains fueled a rally in the Full Truck Alliance (YMM). The stock rose more than 13% after the news.

The digital freight platform reported Q3 earnings that more than doubled the amount analysts were forecasting. Revenue growth also exceeded expectations, with the number up about 32% year over year.

Looking ahead, YMM forecast full-year revenue growth of 25.2% to 31.5%, compared to a 25% expectation.

YMM ended Wednesday’s trading at $6.95, up 81 cents from the previous day’s close. Stocks recouped some of their recent losses as they rose, but remained below a multi-month high set last week.

Outstanding Decliner

PagSeguro (PAGS) fell on its quarterly results. Shares of the Brazil-based digital payments company fell nearly 15% on the day as the stock was weighed down by disappointing sales numbers.

PAGS reported revenue of $4.04 billion in the third quarter, up 45% year over year. This fell short of analysts’ expectations.

Affected by the financials, PAGS fell $1.75 to close at $10.26. The decline continued a recent pullback, with the stock down about 24% over the past month. Shares also posted their lowest closing price since July.

Notable new high

A positive regulatory decision gave a boost to BioMarin Pharmaceutical (BMRN) shares, which climbed 7% to hit a new 52-week high.

The company reported that the U.S. Food and Drug Administration does not plan to hold an advisory committee meeting related to the company’s Roctavia gene therapy for the treatment of severe hemophilia A.

On the news, BMRN surged to a 52-week intraday high of $99.74. From there, shares fell a bit but still closed at $97.79, up $19.01.

Wednesday’s gain contributed to a recent rally. The stock is up about 21% since the close on Nov. 9. BMRN has seen choppy trading into 2022 and is now up about 9% for the year.

For more on the day’s biggest winners and losers, check out Seeking Alpha’s On The Move section.


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