Why Blockbuster Opening Weekends Cause Falling Stock Prices

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I stepped a little bit out of my comfort zone for my latest Quartz story, on why a movie studio’s stock often falls after its film has a blockbuster opening weekend. As I wrote,

The post-blockbuster stock dip has become a surprisingly common occurrence in recent years. Here’s why: just as Hunger Games fans spent months eagerly awaiting the film’s opening weekend, investors were likewise buying up LGF shares, causing the stock to double in the past year. This mirrors activity around an eagerly-anticipated new tech products, like iPhone and iPad releases, as investors buy in anticipation of a big event, then try to unload their shares to those suddenly interested in buying in after the gargantuan sales figures come out.

The more you know!

Why blockbuster opening weekends cause falling stock prices

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