The whole stock market went down today. Even so, the market seems to be saying: "The ogre's opening? Could have been better..."
DreamWorks shares dropped 10% to $31.31 in early morning trading after the Glendale studio reported far lower box office numbers for the final "Shrek" film than investors had anticipated. The fourth movie in the series generated an estimated $71.3 million in revenue in the U.S. and Canada this weekend, compared with $121.6 million for "Shrek the Third" ... [Update, 1:16 p.m.: The actual weekend gross for "Shrek Forever After" once Sunday ticket sales were fully calculated was $70.8 million.]
Although the film will probably still be profitable, the results stunned Wall Street analysts who had been banking on a much bigger opening ...
You could have fooled me about the opening weekend numbers. I saw the feature early on Friday, and thought the picture was going to come in at the century mark. Which only goes to show that William Goldman is a lot smarter (and more correct) than I am.
When you come in "below expectations," the carving knives come out. For instance, Steve Mallas of Blogging Stocks was sort of brutal:
Jeffrey Katzenberg, CEO of DreamWorks Animation (DWA), must be feeling just awful. The new Shrek bombed. There's no way to spin the statistic (although I can't wait to see how the company tries). ...
Mr. Mallas employ a generous dose of hyperbole, but he's likely reflecting Wall Street's opinion this Monday.