NEW YORK, Sept 30 (Reuters) - Shares of movie theater companies were down on Tuesday after Netflix Inc announced its first foray into feature film production.
Netflix, which has found success with such original television programs as “House of Cards” and “Orange is the New Black,” is jointly producing the sequel to “Crouching Tiger, Hidden Dragon” with Weinstein Co.
The film will be released on the online video service and in select global IMAX theaters next August.
Shares of AMC Entertainment fell 2.5 percent to $22.84 while Regal Entertainment Group was down 1.4 percent to $19.78. Cinemark Holdings Inc was down 1 percent at $34.04.
IMAX Corp was up 0.4 percent to $27.69 on the New York Stock Exchange. Netflix rose 1 percent to $454.12, extending its year-to-date advance to 23 percent.
While investors appeared to support Netflix’s move, the stock continues to be viewed as wildly overvalued.
According to StarMine’s measurement of intrinsic value, which looks at anticipated growth over the next decade, Netflix is one of the most overpriced names in the S&P 500. Intrinsic value indicates that Netflix should trade at $101.40 a share, nearly 80 percent below current levels.
Index snapshot at 11:42 EDT:
* S&P 500 was rising 3.83 points, or 0.19 percent.
* Nasdaq Comp was gaining 9.13 points, or 0.2 percent.
* Dow industrials was adding 51.56 points, or 0.3 percent.
* Russell 2000 was falling 3.22 points, or 0.29 percent.
* S&P MidCap was dropping 2.98 points, or 0.22 percent.
* S&P SmallCap was losing 1.12 points, or 0.17 percent.
Editing by Nick Zieminski