SIX - Why SeaWorld Entertainment Stock Jumped Over 10% This Morning
Shares of water-themed amusement park operator SeaWorld Entertainment (NYSE: SEAS) jumped 10.5% out of the gate this morning. Peers Cedar Fair (NYSE: FUN) and Six Flags Entertainment (NYSE: SIX) also rose, but their advances only extended into the high single digits. That said, by 11 a.m. EDT, SeaWorld's price move had moderated, leaving it with an increase of around 7.5%. Cedar Fair and Six Flags were holding on to gains of about 5%.
Amusement parks bring large crowds of people together on group-based rides where they shout and scream, zigging and zagging along their tracks. It's an environment in which COVID-19 could easily spread. Investors have understandable concerns about the amusement park business model right now, given that the world has yet to figure out a way to eradicate the novel coronavirus.
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