Soft “Kung Fu Panda” opening affects DW stock Tuesday morning
By Sean O’Connell
Hollywoodnews.com: So “Kung Fu Panda 2” didn’t exactly come out of the gate kicking. It didn’t help that the animated sequel was opening alongside one of the year’s biggest comedies in “The Hangover Part II.” And maybe parents are growing tired of having to pony up extra dough to pay for 3D ticket prices in this distressed economy.
But really, who is paying attention? I’ll tell you who. Wall Street.
Shares of DreamWorks Animation fell “to their lowest level in two years in early Tuesday trading,” according to THR, as Wall Street analysts said this was the latest in a string of disappointments from the animation studio.
“The key drivers of DWA’s troubles are that its movies have not lived up to expectations and the global DVD market is in free fall as consumers continue to shift from buying to renting,” one analyst said.
“The film grossed less than its predecessor (opened to $60.2 million) despite the 3D ticket premium, long weekend, and three years of ticket price inflation,” another added. “This is the latest in a string of disappointments for DWA and is more troubling as Panda has been one of the company’s few remaining franchises, which may be showing signs of fatigue.”
We’ll see if this “fatigue” stretches to include rival studio Pixar when it releases “Cars 2” later in June. But for now, the news isn’t great for DreamWorks.
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