What happened Shares of companies that deliver entertainment to large numbers of people popped on Monday after positive coronavirus vaccine news was released from Moderna. The company said its COVID-19 vaccine is up to 95% effective against the virus and could be approved in the U.S. by the end of the year. It marked the second straight week that started with good news about a potential vaccine. The reaction from stocks that have been pummeled by COVID-19 was swift. Shares of amusement park Cedar Fair (NYSE: FUN) jumped as much as 10.9% in early trading, entertainment venue Dave & Buster's (NASDAQ: PLAY) was up 12.1%, and MGM Resorts (NYSE: MGM) rose 5.3% at its high. The stocks were up 3.7%, 8.7%, and 2.1%, respectively at 3:35 p.m. EST. Image source: Getty Images. So what Entertainment venues have been hit harder than most during the pandemic, largely because they're where people would normally gather to have fun. Everything from theme parks to casinos have been shut down to varying degrees during the past few months, with most yet to recover to prepandemic levels. The chart below shows just how weak financials have gotten at three of these entertainment companies. Revenue has plunged for all three and, not surprisingly, they're all losing money. FUN Revenue (Quarterly) data by YCharts As you might think, these consumer discretionary stocks have been crushed as well. FUN data by YCharts The only way there's going to be a return to normal business operations will be getting past the COVID-19 pandemic. And a vaccine -- whether from Moderna, Pfizer and BioNTech, or elsewhere -- is a key part of that process. So today's news was met with open arms by entertainment investors. Now what It'll be months until a vaccine is widely available in the U.S. In the meantime, businesses and consumers will likely be spending a lot less at entertainment venues. But there's a light at the end of the tunnel for Cedar's, Dave & Buster's, and MGM Resorts. What I'll be watching closely is how quickly businesses return to places like casinos and venues like Dave & Buster's. It's large events that drive the profitability of these companies, and corporate spending in these locations has been almost nonexistent this year. The one word of caution that all investors should keep in mind is that the exuberance of today's bounce in entertainment stocks could reverse tomorrow. As I highlighted, the industry still has a long way to go before it reaches the profitability experienced in 2019, and that could weigh on these stocks long term. But today, the excitement that a vaccine could reduce the impact of the pandemic is helping push the entire industry higher on Wall Street. 10 stocks we like better than MGM Resorts InternationalWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and MGM Resorts International wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Travis Hoium owns shares of MGM Resorts International. The Motley Fool recommends Cedar Fair and Dave & Busters Entertainment. The Motley Fool has a disclosure policy.Source