The highly anticipated sequel “Sonic the Hedgehog 2” was the box office leader for the weekend and posted some record-breaking numbers. Here are three stocks that could enjoy the success of “Sonic the Hedgehog 2.”
What Happened: Video game adaptation “Sonic the Hedgehog 2” grossed $71 million in its domestic theatrical opening this past weekend. The movie has also taken in $70 million from international theaters for a total box office take of $141 million to date.
“Sonic the Hedgehog 2” is a sequel to the 2020 theatrical release and comes from Paramount Global (NASDAQ:PARA)(NASDAQ:PARAA) and Sega Sammy Holdings Inc - ADR (OTC:SGAMY).
The sequel not only beat the $57 million opening weekend the first Sonic movie had but put up some impressive numbers for 2022 and for the video game genre.
“Sonic the Hedgehog 2” has the second-biggest opening weekend for 2022, trailing only “The Batman” from AT&T Inc (NYSE:T) unit Warner Bros.
The second Sonic movie also has the title of the highest-grossing opening weekend for a video game adaptation, beating its predecessor which had previously held the record.
Video game adaptations could be heating up once again with “Sonic the Hedgehog 2” and “Uncharted” turning in strong results recently.
“Uncharted” has the fifth-highest opening box office weekend total for a video game adaptation at $44 million and has grossed $143 million domestically and $383.5 million worldwide since its February release by Sony Group Corp (NYSE:SONY).
If video game adaptations are getting hot again, several stocks could be worth watching for investors.
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Stocks to Watch - Netflix Inc (NASDAQ:NFLX), Nintendo Co Ltd (OTC:NTDOY) and Sega Sammy: The big winner here could be Sega Sammy, which is the owner of the Sonic the Hedgehog brand and intellectual property. The success of the movie on the big screen can translate to success for consumer products, licensing and the small screen.
A new 3D animated show called “Sonic Prime” is set to be released on Netflix in 2022 that could see success carryover from the theatrical release.
Sega also has several other franchises that it could look to license out for movies or television shows using Sonic the Hedgehog as an example of built-in fan bases.
Speaking of Netflix, the company not only has a show coming starring Sonic the Hedgehog, but has a whole library of video game adaptations it is working on.
Netflix had success with “The Witcher,” which became one of its most-watched series ever. The company has now been doubling down on licensing video game series from video game companies to continue boosting its content offerings.
An adaptation of the “League of Legends” game from Tencent Holdings ADR (OTC:TCEHY) called “Arcane” has also posted strong viewership figures and led to a new game being released in partnership between the two companies.
Among the video game adaptations in the works for Netflix are Mega Man, Pokemon, Angry Birds, CyberPunk, Assassin’s Creed, Resident Evil and Tomb Raider.
If video game adaptations get hot, the biggest winner could be Nintendo. Nintendo is the owner of a huge catalog of intellectual property and brands of some of the biggest video game characters of all time.
Nintendo has been selective with making shows and movies of its characters while rumors have existed for years.
Nintendo will release a new animated Mario movie on Dec. 22, 2022, with Universal Pictures, a unit of Comcast Corporation (NASDAQ:CMCSA). The new movie will feature the voices of Chris Pratt and Charlie Day as Mario and Luigi, respectively.
Nintendo’s Zelda franchise has been a long-rumored target of streaming companies to turn into a franchise.
If the Mario animated show is a hit, Nintendo could quickly become a trade idea for people recognizing the licensing potential of its huge library of titles.
Photo Credit: Courtesy Paramount - © 2021 Paramount Pictures and Sega of America, Inc. via IMDb
