RDBX - Why Redbox Entertainment's Stock Plunged 51% Today
Shares of Redbox Entertainment (NASDAQ: RDBX) dropped as much as 51.2% in trading on Wednesday after warning that its business is in trouble. Shares cratered early in the day and are off 47.8% as of 3 p.m. ET.
Redbox filed an 8-K with the Security and Exchange Commission (SEC) that said the company's financial results were hurt more than expected by the lack of new movies in 2021. The pandemic pushed back many theatrical releases and pushed some to streaming services immediately, negating the need to rent movies from Redbox. The company responded by increasing marketing spending, which didn't turn around the trend.
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Why Redbox Entertainment's Stock Plunged 51% Today