With sequel debuting to lukewarm $68M, animation company's stock has dropped 9% over two trading days; RealD stock drops 12% after movie only drew 45% of its revenue from 3D
Wall Street is not impressed by the $68 million, five-day opening of DreamWorks Animation's "Kung Fu Panda 2."
As of midday trading Tuesday, DreamWorks stock was down over 4 percent. Factoring in a drop of over 5 percent on Friday, the stock is at a two-year low.
Investors have been steadily hammering DreamWorks stock for every one of the studio's movie openings since "How to Train Your Dragon" debuted in March of last year.
But the damage Tuesday spread beyond DreamWorks.
With the movie commanding only 45 percent of its premiere revenue from 3D — a week after Disney's fourth "Pirates of the Caribbean" endured similarly lackluster performance with the format — Wall Street seems to be down on 3D, too, now.
Shares of RealD were down more than 12 percent Tuesday.
"Early sales data Friday … made it clear that DWA's 'Kung Fu Panda 2' would sell more 2D tickets than 3D tickets," wrote BTIG analyst Richard Greenfield. "However, the final tally was even worse than we imagined, with only 45 percent of box office coming from 3D and only 36 percent of attendees coming from 3D presentations (45 percent is the lowest 3D box office share since 'Despicable Me' last summer, which had significantly fewer 3D screens than 'Kung Fu Panda 2").
Share prices for 3D technology company RealD have been climbing a steep incline for a year, growing from $15.63 a share 52 weeks ago to a high of $35.60.
However, there is fear among analysts that the domestic market is souring on 3D — RealD prices will close at only around $27 per share Monday.
Last weekend, only 46 percent of "Pirates of the Caribbean: On Stranger Tides'" premiere audience came from 3D revenue.
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