IMAX Corporation (IMAX): A Bull Case Theory
An audience of moviegoers inside a theatre, savoring the latest cinematic experience.
IMAX Corp. stands out as the premier player in the ongoing 'premiumization' trend reshaping the cinema industry, driven by audience demand for elevated theatrical experiences and higher per-patron spend. The company's core strength lies in its dual business model: remastering films into the proprietary IMAX format, and providing or leasing enhanced theatre systems globally. In exchange for converting films into IMAX format, the company earns ~11% of box office revenues from studios.
On the systems side, IMAX monetizes its offerings via sale, lease, or increasingly popular revenue-sharing models, in which it provides the system and installation at its own cost and earns ~7% of box office revenue from exhibitors. With just under 1% of global screens, IMAX commands 3.5% of the global box office—a market share that has grown over 40% since 2018. This reflects both strong demand and the format's success in drawing premium-paying audiences.
IMAX has grown its global system base from 863 in 2012 to 1,738 today across 89 countries, with over 350 systems in the backlog and significant runway remaining. Studios are increasingly releasing tentpole films in IMAX, and directors are now shooting directly with IMAX cameras to leverage its superior quality and revenue potential—leading to higher take rates for IMAX.
With a robust moat built on proprietary technology, brand strength, and high switching costs for exhibitors, IMAX is uniquely positioned in the PLF market. Its royalty-like business model, operating leverage, and alignment with studios and exhibitors make it a compelling investment opportunity.
Previously we covered a bullish thesis on The Marcus Corporation by Waterboy Investing in October 2024, which highlighted the company's strong cinema and hotel segments, along with valuable real estate holdings. The company's stock price has appreciated by approximately 9% since our coverage. This is because the hotel segment grew steadily. Raging Bull Investments shares a similar view but emphasizes IMAX's premium format leadership.
IMAX isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of IMAX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
21 minutes ago
- CNN
The EarFun Clip have officially made me a believer in open earbuds
I never thought I'd become an open earbuds guy, but the EarFun Clip wireless earbuds just converted me. These $70 clip-ons are the latest in a growing category of wireless earbuds that rest above your ears rather than lodging inside of them, allowing you to easily stay aware of your real-world surroundings while alleviating some of the pressure that turns some folks off to in-ear options. And after spending nearly a week with the Clip, I can see why they're catching on. The EarFun Clip's airy design feels like nothing's even there, and they offer strikingly good sound quality without needing to nestle all the way into your ear canals. The battery life is pretty bonkers too. And while I can't fully drop the AirPods Pro from my daily audio rotation, the Clip have earned a place next to them for those times I could use the extra ambiance. Here's why they're some of the best budget earbuds I've tested. EarFun Clip Open-Ear Earbuds This affordable pair of headphones makes it easy to enjoy your music and podcasts and still stay aware of what's going on around you. A super-comfortable design that keeps you aware I never thought I'd get down with open earbuds (you mean to tell me I have to clip these onto my ears?), but the EarFun Clip have been a joy to wear for the past few days. Their design looked pretty foreign to me as someone who doesn't usually wear these types of buds, but once I figured out how to hook them on, they nestled comfortably and securely on my outer ear to the point where I constantly forgot that they were there. They're also IP55 rated for sweat and water resistance, should you want to take them on a run. So, why wear these types of earbuds? Since the EarFun Clip's audio drivers rest right above your inner ear canals — rather than lodging in them like most earbuds do — you can still hear the outside world with full clarity while rocking out to your favorite songs and podcasts. Sure, most premium earbuds have good ambient noise modes that amplify your surroundings when you need to stay aware, but even the excellent Transparency mode on my beloved AirPods Pro 2 still makes me feel the slightest bit isolated from what's happening around me. There's nothing quite like hearing your surroundings with your actual ears, which is something I've come to appreciate when I'm walking my dog and want to stay aware of oncoming cars and pedestrians, or working from home and don't want to miss an important delivery. And when I run into friends on the street or show up at my local coffee shop, I can start a conversation without fumbling to take the buds off or switch to a transparency mode. Of course, there are plenty of scenarios where I do want to drown out everything around me, but the EarFun Clip truly excel in the environments they're designed for. Shockingly great sound for open-ear buds You would think that a cheap pair of earbuds with an open-ear design would mean less immersive sound … and you'd be wrong. I'm genuinely shocked by the sound quality on the EarFun Clip, which has made my daily playlists sound rich, clear and satisfyingly spacious. When taking in the bright post-rock soundscapes of the new Moving Mountains record, I could easily pinpoint each lush layer of instrumentation — from the dynamic drums and rollicking bass to the piercing lead guitar and subtle piano melodies. Uptempo pop songs had just as much bite and detail, as the appropriately deep bass and haunting synth of Charli XCX's 'Sympathy Is a Knife' had me immediately bopping my head. This is impressive for a set of buds that cost less than $70, let alone ones that don't nestle into your ears at all. While the EarFun Clip sounded great out of the box, you get plenty of options for customizing their output via the free EarFun Audio app for iOS and Android. You can play with various equalizer presets (like Bass Boost, Vocal Enhancement and a range of genre-specific modes) via clear, colorful icons, or you can dig into the custom EQ settings and fine-tune the frequencies yourself. There's also a Theater mode that's designed to create a surround sound-like 3D audio effect, though it mostly just made the music louder and muddier for me, so don't expect anything on the level of Apple's Spatial Audio here. Much more practical is the Privacy mode, which instantly lowers the volume whenever you need to stay extra discreet and be extra aware. Oh, and when I needed to take some calls, the EarFun Clip's microphones proved more than capable. Great battery life and lots of features On top of feeling and sounding great, these buds seem to never run out of battery. The EarFun Clip are rated for 10 hours of continuous use and a total of 40 hours when you factor in the charging case. That more than lines up with my testing. After four days of heavy listening, I've got a full charge in the buds and 55% battery still left in the case. The EarFun Clip are also loaded with way more features than you might expect for a pair of budget-priced earbuds. In addition to the robust sound customization options I mentioned above, these buds offer dual-device connectivity, which made it easy to stay paired to both my iPhone and MacBook, and switch between the two on the fly. There's a handy Find Headphones tool in the app as well that lets you emit a chime from either earbud in the event one or both of them get lost in your couch, a Hearing Health menu that lets you set maximum volume levels and a few different Automatic Shutdown settings for conserving battery. Folks with compatible Android phones get to take advantage of LDAC support for extra-high-resolution sound, as well as Google Fast Pair support for one-touch setup. There's also a Game mode designed to lower audio latency, but even as a fairly avid mobile gamer, I've never felt the need to use this kind of thing. Finally, physical controls! We've long criticized EarFun for the finicky, inconsistent touch controls on many of their earbuds, which is why I was delighted to find that the Clip feature good ole physical buttons. The small little clickers on the buds made it easy to adjust volume and playback on the fly, and better yet, the controls are fully customizable via the EarFun Audio app. No wireless charging (or automatic pausing) There's not much I don't like about the EarFun Clip, though I was a bit bummed when I dropped the case onto my wireless charger only to realize they weren't juicing up. A lack of wireless charging isn't a huge deal breaker for a pair of sub-$70 buds, but it's still disappointing, especially since similarly priced EarFun models like the EarFun Air 2 offer the feature. Another nitpick? These buds don't automatically pause when you take them off, meaning you'll have to manually stop your music if you don't want to unknowingly burn through a whole playlist and waste battery in the process. It's a small inconvenience, but after never having to worry about this sort of thing on my (admittedly pricier) AirPods, it's still a notable one. I miss active noise cancellation This is less of a criticism of the EarFun Clip and more a realization that open earbuds can't be the only earbuds I use. While I love the extra awareness they allow for when walking the dog or working from home, I don't like them nearly as much when I'm commuting, as I was painfully reminded the other day after hearing the ear-piercing sound of a child screaming on the bus. I can definitely see the Clip staying in heavy rotation around the house and around the block, but I certainly won't be taking them on the subway or on a flight anytime soon. The EarFun Clip are some of the best open earbuds you can get for the price, offering incredibly impressive sound quality within an unobtrusive design that's perfect for folks who don't like sticking things in their ears. Their rich feature set and comfy feel belies their $70 price tag, and you can use them for days on end without having to charge them up. There are plenty of other great options in this growing category, from the super-premium and super-stylish Bose Ultra Open Earbuds to the Shokz OpenFit Air that feature even more secure ear hooks for working out. If you want more of a jack-of-all-trades option that can both drown out and let in outside noise, you should check out the excellent noise-canceling EarFun Air Pro 4. But for folks sold on this open design, you'd be hard-pressed to find a better pair for the money than the EarFun Clip. How long do the EarFun Clip wireless earbuds last on one charge? How long do the EarFun Clip wireless earbuds last on one charge? The EarFun Clip are rated to last up to 10 hours on a single charge and can deliver up to 40 hours of playtime when using the case. Are the EarFun Clip wireless earbuds good to use for running? Are the EarFun Clip wireless earbuds good to use for running? Due to their IP55 rating for water resistance and open design that lets in important ambient noise, the EarFun Clip can be a good option for runners. Just make sure you get them on nice and snug before you hit the track or street. Do the EarFun Clip wireless earbuds come with their own case? Do the EarFun Clip wireless earbuds come with their own case? Yep! The EarFun Clip come with a traditional charging case, though don't expect fancy perks like wireless charging. CNN Underscored has a team of skilled writers and editors who have many years of experience testing, researching and recommending products, and they ensure each article is carefully edited and products are properly vetted. We talk to top experts when applicable to make certain we are testing each product accurately, recommending only the best products and considering the pros and cons of each item. Senior tech editor Mike Andronico has been writing product reviews of headphones and earbuds for nearly a decade and is constantly in search of the next great pair that can dethrone his beloved AirPods Pro 2.
Forbes
an hour ago
- Forbes
What CFOs Need To Know About Policy Changes In Trump's Tax Law
What's bigger than 97% of global economies, total defense spending around the world, and the entire cryptocurrency market? AI chip company Nvidia, writes Forbes' Derek Saul. Last week, the company's valuation hit $4 trillion—it's the first firm to cross that milestone. Nvidia's stock has taken off in the last few years, with its valuation just hitting the $1 trillion mark in 2023. Nvidia owns a whopping 92% of the market for datacenter GPU chips, according to an IoT Analytics report published in January. The company's stock kept on climbing Tuesday morning, hitting a record high with a more than 4% spike after the company said the Trump Administration reversed its decision to ban exports of Nvidia's H20 chip to China. Sale of the chips, which were designed specifically for the Chinese market and had been a top seller for Nvidia, were banned in April. But this growth is about much more than Nvidia, writes Forbes contributor Steven Wolfe Pereira. After all, Nvidia is a hardware company. Investing in hardware is an important first step to developing better and more impactful AI systems, but everything in AI is built on top of it. Nvidia's growth shows that right now is the best time for companies in all industries to dig into their AI development strategies. Companies should look at how their AI capabilities are progressing compared to competitors, work toward AI solutions for your processes, and determine how AI can be used to reshape what you do. After all, Wolfe Pereira writes, the change AI will bring to business is just beginning, and the IDC predicted it will drive an economic transformation worth nearly $20 trillion by 2030. This is the published version of Forbes' CFO newsletter, which offers the latest news for chief finance officers and other leaders focused on the budget. Sign up here to get it delivered to your inbox every Tuesday. Container ships docked at the Port of Oakland in Oakland, inflation has stayed lower than expected for the last several months, it's beginning to tick upward. Consumer prices were up 2.7% in June, according to federal government figures released on Tuesday, a month-over-month increase of 0.3%, and a tenth of a percentage point more than economists' predictions. Many of Trump's new tariffs have not yet been enacted and companies and consumers haven't felt their impact, though an analysis released last week by Yale University found that the new import taxes could increase costs for households by about $2,400. UBS analysts project that tariffs could push inflation to 3.9% by the end of the year, but given the uncertainty and volatility around tariff amounts and effective dates, it's been difficult to assess. However, a Reuters/Ipsos survey in late April found that close to nine in 10 consumers are concerned about inflation this year. There's been more tariff-related turmoil in the last week, with the Trump Administration announcing several new effective dates and rates. Rather than starting last week as was previously announced, the bulk of the tariffs have been pushed to start August 1. And Trump says he's increasing the baseline tariff rate on all nations to 15% to 20%, up from 10%. Tariffs announced on specific countries include a 35% rate on Canada, 30% on the EU and Mexico, 25% on South Korea and Japan, and 50% on Brazil because of the country's ongoing prosecution of former leader Jair Bolsonaro, which Trump called an 'international disgrace.' In the last week, Trump also has floated a potential 200% tariff on pharmaceuticals, a 50% tariff on copper and additional 10% tariffs on BRICS nations, which Trump said is an 'Anti-American' bloc. Foreign leaders denounced the tariff announcements as irresponsible and based on inaccurate information, but many have said they will try to continue negotiating. And even though notes from last month's meeting of the Federal Reserve's Open Market Committee indicated that many on staff feel an interest rate cut is likely to come later this year, the Trump Administration is already starting the formal procedure to replace Fed Chair Jerome Powell, Treasury Secretary Scott Bessent told Bloomberg. Trump has repeatedly—and unsuccessfully—demanded rate cuts from Powell since his inauguration, sometimes with insulting social media posts. Powell's term leading the Fed is set to expire next May. BIG DEALS Several Kellogg cereals on a grocery store shelf. Lindsey Nicholson/UCG/Universal Images Group via Getty Images Italian candy maker Ferrero is continuing its mammoth M&A streak, announcing last week its plans to buy famed U.S. cereal maker WK Kellogg for $3.1 billion. WK Kellogg was formed in 2023 when Kellogg split, and includes the company's North American cereal brands. If the deal is approved by investors and regulators, the iconic cereal company would be the largest in a string of at least 21 global acquisitions for Ferrero under Executive Chairman Giovanni Ferrero in the last decade. Forbes' Giocomo Tognini writes that Giovanni Ferrero, who owns more than 75% of the global food giant, has led the company in more than $13 billion worth of acquisitions. This deal, Ferrero's second acquisition of brands that once belonged to the larger Kellogg company (the first was the $1.3 billion purchase of its cookie and fruit snack brands in 2019), could increase Ferrero's annual revenues by 10%. DEEP DIVE What Trump's New Taxation And Policy Law Means For Your Business President Donald Trump shows his signature on the "One Big Beautiful Bill Act" at the White House on July 4. BRENDAN SMIALOWSKI/POOL/AFP via Getty Images On July 4, Trump's signature budget proposal, dubbed the One Big Beautiful Bill Act, was signed into law. It's mainly a collection of taxation and financial policies, and could have big implications for businesses. It also happens to be 887 pages long, so there's a lot to digest. Forbes' Kelly Phillips Erb delves into some of the benefits that businesses will see under the bill. The 2017 corporate tax cuts from Trump's first administration were already permanent, so the bill did not need to extend them. However, the new law makes the 20% pass-through deduction for LLCs and S-corporations permanent. It also continues tax exclusions for earnings on the sale of 'qualified small business stock' based on the date it was purchased, and brings back 100% deductions on asset depreciation. Forbes contributor Nathan Goldman also highlights how the new law will impact corporate taxation. Businesses can now immediately expense domestic R&D costs, which is retroactive to December 31, 2021, when this benefit last expired. International R&D costs will still be subject to the current amortization rules. The law also brings back Trump's first-term opportunity zones—areas that will bring significant tax deductions if businesses are located there. Under the new law, a third of all opportunity zones must be in rural areas, but the tax incentive is increased to 30% exclusions of deferred gains—up from 10% in the previous administration. The new law also significantly increases the tax credit for businesses to build an on-site child care facility or contract with a qualified provider, writes Forbes ' Danielle Chemtob. Businesses can now offset 40% of qualified child care expenditures up to $500,000, or 50% up to $600,000 in the case of small businesses. The benefit, which used to be 25% of expenses with a maximum of $150,000 annually, was rarely used. COMINGS + GOINGS Donut chain Krispy Kreme appointed Raphael Duvivier as chief financial officer, effective July 11. Duvivier joined the company in 2019 and previously worked as president international. He succeeded Jeremiah Ashukian, who is pursuing another opportunity. appointed as chief financial officer, effective July 11. Duvivier joined the company in 2019 and previously worked as president international. He succeeded Jeremiah Ashukian, who is pursuing another opportunity. Analytics software firm SAS tapped Matt Parson as executive vice president and chief financial officer. Parson steps into the position from ExtraHop, where he held dual CFO and COO roles. He succeeds David Davis, who is retiring after nearly 40 years with SAS. tapped as executive vice president and chief financial officer. Parson steps into the position from ExtraHop, where he held dual CFO and COO roles. He succeeds David Davis, who is retiring after nearly 40 years with SAS. Digital infrastructure company Equinix selected Shane Paladin as executive vice president and chief customer and revenue officer, effective July 14. Paladin most recently worked as CEO of Siteimprove, and also held leadership roles at SAP. STRATEGIES + ADVICE Disruption is the new normal in business, and good leaders can see it as an opportunity—not just a problem. Here are four ways that CFOs can turn today's unknowns into tomorrow's success. As AI is becoming more capable, it can sometimes do a better job than underperforming employees. Here's how to determine whether you can use an AI agent to effectively replace a team member who isn't getting the job done, and advice on how to make it happen. QUIZ The One Big Beautiful Bill Act brings back a provision from Trump's first term in office that boosted the number of purchases of which big-ticket luxury item? A. Vacation properties B. Boats C. Private jets D. Bespoke watches See if you got the right answer here.
Yahoo
an hour ago
- Yahoo
What to expect from TSMC earnings & large-cap tech
Investors are eyeing Big Tech earnings as Taiwan Semiconductor Manufacturing Company (TSM) reports its second quarter results on Thursday, July 17. New York Life Investments economist and portfolio strategist Lauren Goodwin, Yahoo Finance Senior Reporter Allie Canal, and Yahoo Finance Senior Reporter Brooke DiPalma join Opening Bid host Brian Sozzi to discuss TSMC's upcoming earnings print, what it has to do with Nvidia (NVDA), and what it could mean for large-cap tech earnings this cycle. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. I'm locked in on TSM for two reasons. One is the Nvidia H20 news, which could be good news for TSM as it manufactures Nvidia chips at its giant plants known as foundries. And two, TSM will report earnings on Thursday. By all indications, TSM stands to impress investors by lifting its full-year revenue outlook owing to strong AI chip demand. The wild card here is how bullish TSM will sound for 2026 given trade uncertainty and the AI CapEx cycle continuing to mature. TSM has no margin for error when it comes to guidance or quarterly execution. Jumping onto the Yahoo Finance platform, you can see TSM stock is priced for growth with above market valuation multiples across the board. Still with me, Lauren Goodwin, New York Life Investments economist and portfolio strategist and Yahoo Finance senior reporters, Brooke Di Palma and Ali Canal. Lauren, I'm back to you on this one. What is your view on on the valuations for large cap tech here into earnings? Well, large cap tech valuations are certainly high, but that doesn't mean that they can't move higher. And with the trade and regulatory backdrop for these technologies improving here in the short term, I anticipate, in agreement with Ali and Brooks' reporting so far, that this is mostly good news for the market, and that these as these technology companies move higher, market breadth sort of moves along with it. The challenges that I mentioned earlier for these companies related to just the uncertainty around trade, but also with respect to TSMC, uncertainty around the specific provisions or capabilities that will be able to move forward from their partner Nvidia. There's a lot of uncertainty there. And so I anticipate that the quality of earnings from these companies will continue to be strong, but their ability to to move their valuations to move higher and higher completely unfettered certainly likely to be challenged here in the next couple of quarters. Well Lauren, they will uh you know, TSMC will be a good test here I imagine. If they come out here and and raise their revenue outlook like I am hearing that could happen and the stock trades off, that could really set the tone for large cap earning season. Yeah, that's absolutely right. And you know, overall I anticipate that large cap earnings, though lower than in Q1, are likely to look a lot better for Q2 than many investors anticipated. And that's in large part because of the pause of policy changes related to tariffs in particular that we've seen over the course of this quarter. As we move into Q3 and Q4, the cost challenges that I anticipate businesses will be facing in in larger order and the decision that those companies will have to make with respect to passing those costs onto consumers or taking hits to margin. We're really going to be seeing a different story play out over the second half of the year. Uh Ali, you know as we focus on this Nvidia news, TSMC looks to have a potentially good quarter on its hands coming up. Look at Intel. I'm not even in this discussion. Even AMD, which is a strong player in this market is not even seen on the same wavelength as Nvidia at this point. Right, and TSMC has really been able to ride this Nvidia wave pretty hard and like you were saying expectations certainly elevated heading into this latest earnings report. But TSMC also is vulnerable, right? We've been talking about the risks of trade US-China relations. They also have their customers concentrated in just a few of those names, right? Nvidia, Apple. So what happens to Nvidia and these big hyperscalers directly impact this manufacturer. So it's one of those chicken or egg situations where you want to make sure that demand is solid. You want to make sure that that these companies are still chugging along here and this news that we got this morning of these H20 approvals from the White House is going to be a boon to this company in particular. But again, those uncertainties, those risks ahead, I'm very curious to hear more commentary on that on the earnings call along with more commentary on what we saw today, right? With those chip approvals now supposedly heading to Trump's desk. He's going to have to signal and sign off on this ultimately, but he has said that he wants to do that. So it all just stems from the Nvidia wave here. Brook, last word to you on our stock of the day. Yeah, absolutely. What I think this really means is this solidifies Trump administration's intention to really win over this AI arms race. What I'm reading from multiple sources out this morning is that Nvidia getting the okay to put out those H20 chips really doubles down on the idea that the Trump administration is very serious about winning the AI arms race. We now know that Trump is set to speak next week at an event around the AI arms race. And when it particularly comes to the stock of the day TSMC, we also know based upon a report from the Wall Street Journal is that they have increased investment in their US expansion and delayed their second Japanese plant. And so this all really leads to the notion that the Trump administration is doubling down on not only getting on Jensen Wong's good side here, but also ensuring that the United States stays ahead of perhaps not only China but also Chinese competitor Huawei. Sign in to access your portfolio
