DreamWorks Slide

Was a fourth Shrek worth it?

DreamWorks Animation stock (DWA) took a 10% hit after the $71 million opening weekend of 'Shrek Forever After', and was trading at $31.31 this morning.

Shrek 4 cost over $150 million to make and earned $50 million less than Shrek 3's opening of $121 million.

I don't usually care much about box office results as they relate to a studio's financial health, but DWA stock has been losing ground at a clip lately, losing 6% of its value before Shrek 4 even opened.

This is on the heels of a 9.2% drop after 'How to Train Your Dragon' in March.

The stock has dropped from $42.75 at the end of April this year to less than $32 this morning. And, that's multiplied by how many millions of shares? Will DWA really make up the loss on 'Shrek Forever After' with DVD rentals/sales, cable licensing, and tie-ins?

It might have been better to have gone out on top with Shrek 3.