DreamWorks Animation (NASDAQ:DWA) may not be a good buy

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By Jacob Maslow

DreamWorks logoIf you got excited by the stocks of DreamWorks Animation (NASDAQ:DWA) last March, you have good reason to get excited, the stock soared by 21% in the month of March , not a bad stock jump for a company that really has only one movie release for 2015. A part of the main reason why DreamWorks Animation did so well in March was due to the release of its movie Home. This animated movie racked up $52,000,000 in its opening weekend, not a bad launch and definitely the kind of good news DreamWorks could use. DreamWorks has been under a lot of downward pressure recently and has now layoffs fairly recently. That’s how bad things are going for the company.

It seems that its stock surged in March may not be sustainable considering the fact that DreamWorks Animation only has 1 movie slated for release in all of 2015. It already released Home and there’s no other movies after that. This is going to be a problem because in 2014 the company has released 3 films, now it’s just going to work on one film a year.

The good news if you want to call on that is that the company is working on some sequels for proven franchises like Kung Fu Panda and The Croods. It’s also working on new intellectual properties like Trolls and Boss Baby. It remains to be seen how stable DreamWorks Animation stock will remain for the rest of 2015. I expect this stock will probably be an anticipation buy based on the movies it would have rolling out next year instead of this year.

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