SHREK’S TOUGHEST CRITIC: WALL STREET

Less-than-stellar box-office results for the opening of Shrek Forever After sent shares of DreamWorks Animation falling 11 percent on Monday. It was a repeat of what occurred in March when DWA’s How to Train Your Dragon also opened below predictions. That film, however, displayed strong legs (it has remained among the top ten for the past nine weeks) and has now earned $211 million domestically and $221 million overseas. Analysts had expected Shrek to open with about $90-110 million. Shares in DWA closed Monday at $31.05, close to its 52-week low of $25.70. However, Wedbush Securities analyst Michael Pachter observed in a note to clients on Monday, “Dragon‘s staying power and licensing deals suggest that there may be long-term revenue upside for Shrek.” Several analysts observed that it will not face any significant competition for the family audience until June 18 when Disney/Pixar releases Toy Story 3. Also hit hard on Monday were shares of IMAX Corporation, which fell 9.4 percent. All of IMAX’s 194 commercial theaters in North America are showing Shrek Forever After in 3D, the largest number for any film to date. The movie is also playing in 45 IMAX theaters internationally and is slated to add another 33 IMAX locations internationally in coming weeks.