Why Redbox Entertainment Stock Fell Sharply This Week?

Redbox Entertainment is popular for its network of self-service kiosks in the United States, and currently, the company has about 40 thousand self-service kiosks, giving a market cap of 92 million dollars. Also, it produces films through its label Redbox Entertainment, LLC. This week, the stock market of Redbox is unpredictable: until Tuesday, it traded on a high value of $5.3500, and on Wednesday, it abruptly dropped, losing about 49% in one day. However, now it is trading lower of $2.0250 while the pre-market trading sessions illustrate a positive tends of 3%. What’s happening?

According to the latest news, the company’s financial results were harmed more than projected by the lack of new movies in 2021. Due to the pandemic, the number of kiosk deliveries decreased in the 4th quarter ended December 31, 2021, and for the whole year. As a result, the company was up against new and old competitors. The corporation expanded its marketing budget, but this did not change the situation.