IMAX Corporation (NYSE:IMAX) is one of the stocks Jim Cramer talked about. A caller sought Cramer’s opinion on the stock in light of Paramount Skydance Corporation and Warner Bros Discovery Inc.’s pending merger. Cramer replied:
You know, IMAX, I’ve gotta tell you, I have news. I go to IMAXs now, and they’re always packed, and one of the reasons we do is because otherwise we’d stay home. The only reason we go to the movies is because there is an IMAX, and I think it’s a terrific situation. I gotta hand it to Gelfond… He did a good job. IMAX is real.
Photo by Adam Nowakowski on Unsplash
IMAX Corporation (NYSE:IMAX) runs an entertainment technology platform that provides film remastering, digital streaming software, and high-end cameras for content creators. Additionally, the company offers theater system leases, maintenance services, and live event distribution. Orbis Investment Management stated the following regarding IMAX Corporation (NYSE:IMAX) in its Q4 2025 investor letter:
We also remain enthused by the opportunity in the entertainment space, with Canada’s IMAX Corporation (NYSE:IMAX) being a key holding. The recent bidding war for Warner Bros Discovery between Paramount and Netflix highlights the immense value placed on scarce content and platforms for developing future high-value Intellectual Property (IP). It has been clear to us for some time that the theatrical window is key to maximising the value of this IP, as content gains a powerful halo effect and associated marketing from a theatre run, while also being highly cash-flow generative in and of itself. The fact that two of the largest bidders for a storied asset are falling over themselves to argue who will be better for theatrical production underscores the continued trend we’ve seen since the dark days of COVID when cinemas were prematurely declared dead.”
Furthermore, IMAX itself has emerged as a keystone asset. Its scarce supply of exceptional technology, both in production and high-quality screens, is now booking into 2029, with some of the best filmmakers struggling to secure a slot. The brand is truly global and ubiquitous, perhaps worth the $2 billion market cap alone, and is now tapping into the burgeoning demand for local language content. It is worth noting that the largest box office of 2025 was not a Hollywood production but a Chinese movie called Ne Zha 2, achieving $2.1 billion in worldwide revenue, eclipsing Hollywood’s best effort, Disney’s Zootopia 2, which brought in a still highly respectable $1.4 billion.
While we acknowledge the risk and potential of IMAX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IMAX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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