3 Reasons Why I Bought Six Flags Stock Last Week
2026-10-26 17:53
•Rick Munarriz •The Motley Fool
• ••••••••• Axe Cap view
Why We’re Watching Six Flags, But Not Buying Here
Six Flags’ dramatic fall offers lessons more than opportunities for South African investors today.
Six Flags stock has plummeted 60%, dragged down by a tragic roller coaster accident, sliding attendance, and hefty debt — nearly $5 billion. In the US, this might attract a contrarian who enjoys bottom fishing. But here in South Africa, the link is thin. Our market rarely sees theme parks like this, and Six Flags’ restructuring moves—selling underperforming parks to a real estate investment trust—don’t translate well to our listed companies. Meanwhile, the rand has barely budged on this story, holding steady around 19.5 USD/ZAR, signaling local investors aren’t buying into any spillovers. If you’re looking for beaten-up stocks, South African miners or financials offer fresher, more tangible opportunities. Six Flags could stabilize by 2027, but risks around debt and attendance remain high. this is just our opinion and not financial advice
Avoid Six Flags stock given its distant relevance and ongoing risks; instead, focus on resilient JSE names like AngloGold Ashanti or FirstRand, which have clearer catalysts and local market support. Monitor USD/ZAR moves for better timing.
- FUN (Six Flags)
- USD/ZAR
- Further operational troubles at Six Flags
- Prolonged weak attendance and sentiment
- Rand volatility unrelated to US amusement parks
4/10
Six Flags stock has plummeted 60% over three months following a fatal roller coaster accident and weak attendance trends, with Goldman Sachs cutting its price target to $6. Despite significant headwinds including high debt and operational challenges, the author argues the stock presents a contrarian buying opportunity for risk-tolerant investors, citing the company's ability to stabilize sentiment during its slow winter season and potential for a bullish catalyst in 2027.
Our take is based on reporting first published by The Motley Fool.