Hollywood's biggest night resulted in the Academy Awards recognizing the ground-breaking visual acuity of director George Miller's Mad Max: Fury Road with six Oscars, more than any film this year. While Oscar nominees and winners often get a bump at the box office in the lead-up to and directly following the annual ceremony, there is some question as to whether the studio subsidiaries of publicly traded companies receive the same bounce in the stock market.
Take Mad Max, for example. In the week leading up to the Oscars, Time Warner (TWX) -- which owns the studio, Warner Bros., that distributed the film -- rose 1.19%. However, today the stock is down 0.24%, though it is up 2.74% year to date.
"The saying in the entertainment world is that if you win the best picture, it's great for the box office ... but not so good for the stock," CMC chief market strategist Colin Ciesznyski told Business News Network last week. Shares in the studios that won the best picture fell in March in 11 of the past 17 years, according to Ciesznyski.
One of the reasons for the lack of bounce to stocks post-awards is the fact that many of the nominees have either already concluded their theater run or are at the tail end of it. But an Academy Award could result in an extended run for the film as audiences flock to see what the hype is about.
"Normally, it's not terrifically meaningful for stocks, but here and there you can get situations where it matters a little," FBR Capital markets analyst Barton Crockett told Reuters last week.
Twenty-First Century Fox (FOXA) had the best odds of winning best picture going into the awards with three films nominated -- The Revenant, Brooklyn and The Martian -- and 26 nominations overall. The studio finished the night with three wins.
Paramount Pictures, a subsidiary of Viacom (VIA), received five nominations for its best-picture nominee, The Big Short, and one for its animated feature, Anomalisa. While The Big Short won for best adapted screenplay and proved to be one of the best movies Paramount Pictures put out this year, Viacom has been actively shopping a minority stake in Paramount amid a changing movie economy landscape.
Paramount Pictures had a rough go in the fourth quarter, as revenue for the period fell 15% over the previous year, to $612 million, for a total operating loss of $149 million. Despite these headwinds, the show must go on, and Paramount does have some heavy hitters in its pipeline for 2016, including the latest iteration of the Star Trek franchise reboot, Stark Trek Beyond. The two movies that have been released so far in the new series have grossed over $850 million worldwide.
Trifecta Stocks portfolio holding Disney (DIS) has had the best box-office run of the major studios, thanks to its shrewd investments in the Star Wars franchise and Marvel Studios. The company was nominated for 14 Academy Awards, taking home two.
While studios and the industry bask in the Oscar hangover, the coming weeks will show whether the parent companies will receive a bump for their subsidiaries' exemplary work.
Do Oscar wins boost movie studios' stock? https://t.co/sPmmgNkXRn¿ RealMoney (@TSTRealMoney) February 29, 2016