DreamWorks Animation stocks slide after analysts caution

By Sean O’Connell
Hollywoodnews.com: And you thought film critics were harsh?

As influential as film writers might like to believe they can be, they don’t hold a candle to financial analysts. Two market analysts recently downgraded their opinion on DreamWorks Animation financial expectations, leading to the company’s stocks taking a tumble in early Tuesday trading, according to THR.

Analysts Doug Creutz and Ingrid Chung both reduced their expectations regarding DreamWorks, with Creutz stating that “the box office potential for animated films declined meaningfully during 2010.”

The company’s shares fell to a low of $27.51 as the stock market opened. That’s dangerously close to the stock’s 52-week low of $26.61, which was reached last summer.

Is this the end for DreamWorks Animation? Hardly. The company’s “How to Train Your Dragon” is competing for an Oscar this Sunday. The studio has a potentially lucrative “Kung Fu Panda” sequel on the summer slate. And while DWA killed the cash cow that was the “Shrek” franchise, we will see a “Puss in Boots” film in theaters on Nov. 4. But for now, analysts are watching the markets and waiting for DWA to rebound.

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