Time to stock up on the turkey and all the fixings…and then next month do it all over again next to a Christmas tree. This would normally be the time to watch retailers and airlines rake in the profits…but this year will be a little different.
I’m still going to be watching both industries, simply because holiday spending patterns may be able to tell us about whether consumers are starting to open their wallets again.
But the holidays are usually a big time for another less loves industry…movie theaters.
The 8 days between Christmas and New Years can account for up to 10% of a theater’s total box office receipts for the entire year.
There are still four films scheduled for release this Christmas including the biggest blockbuster of the year Wonder Woman 1984. Even Wonder Woman may not be able to pull in that kind of dough since the movie will be released simultaneously in theaters and on HBO Max.
Movie theaters have indeed had a rough year.
The Coronavirus accelerated their struggles. Attendance to the movies has in fact been going down since 2002 and has been sitting at a 25-year low. Netflix, Disney and Amazon have been doubling down on streaming way before it became an essential quarantine activity.
Factor in that the latest home televisions are technically superior to theater screens, and it makes sense that investors should be looking towards companies that are profiting from this shift.
You could pick LG or Samsung; both are household names and will continue to profit. But neither trade on the US market.
Instead, I recommend that you look toward Sony Corp (NYSE: SNE) which has been trading on the New York stock exchange for 50 years.
Sony is the clear winner here, not just because it’s easy to trade, but because the company has its hands in every big trend for the up and coming year.
This is the year of upgrading televisions, gaming systems and surround sound. It’s all about turning your living room into the movie going experience.
Stores are doubling down on Black Friday sales that started at the beginning of November…and just might go all the way out until Christmas.
2020 has also accelerated a shift in console gaming to cloud gaming. While people are sitting at home, they are buying more exclusive online content.
The launch of the Playstation5 will continue to push the subscriptions of Playstation Plus and the PlayStation Now cloud gaming services. Playstation Now has grown from 700,000 users in March 2019 to 2.2 million as of April 2020.
Sony’s already released a line of 5G phones to keep up with Apple and Samsung.
It’s also got its hands in areas things such as HD surgical monitors and imaging. It’s been working with universities to embrace a new normal of remote learning and working with corporations to master the transition to smaller and simpler.
Sony also recently announced the world’s first intelligent vision sensor with AI processing functionality. This means that the sensor does not need a high-performance processor or external memory. This one chip completes everything from image acquisition to the AI processing.
The company is determined to have its hands in everything technology related and will continue raking in the money no matter how technology changes.
Despite this uncertain year, Sony’s most recent quarter sales were the same as the previous year. And investors are noticing.
Shares are up 32% since the beginning of the year.
And there’s no sign of slowing down. If you want a well-rounded technology stalwart to add to your portfolio, Sony is the one.
Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%
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