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lets do some math to help you understand, inside

Posted by: islander (a.k.a del_CHG_islander2) on May 05, 19:58 in response to HNIF's post I don't understand why the stock is falling. The...

So Guardians is currently projected to have an opening weekend between 140 and 150 million. That is huge. But as far as this game is concerned, we want to project what the movie will do over its first 4 weeks. We do that by comparing it to other films, and since this is a Marvel film, lets use other Marvel films.

The last one was Dr. Strange. It opened to $85M, and did about $206M through 4 weeks. So if we divide $206 by $85 we get about 2.4. This is what we call a multiplier. Lets use that for Guardians...140 * 2.4 = $336, and 150*2.4 = 360. So, if Guardians 2 performs like Dr. Strange did, (and assuming these early projections are reasonably close), then Guardians 2 should make around 336-360M over 4 weeks. Now look at where Guardians 2 is priced at. Do you see why traders are making the stock move the way it is?

But lets look a bit further. The last 6 Marvel Cinematic Universe films have had the following multipliers:

2.4 for Strange

2.1 for Civil War

2.6 for Antman

2.2 for Ultron

2.7 for Guardians 1

and 2.4 for Winter Soldier

so the range is really very wide. Using those multipliers and these early estimates, Guardians 2 could make anywhere from $294M (140*2.1) all the way up to $405M! (150*2.7). So its really just a guessing game at this point. As updated numbers come in, traders will re-analyze and make position changes as needed.





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