While the hit animation sequel did open with $49.5 million domestically in its first weekend, analysts were predicting a much bigger hit. In result, the company’s stock has fallen more than $3 dollars (10.97%) on Monday, trading currently at $24.35.
How to Train Your Dragon 2, nevertheless, was a sure hit with audience members and critics, both giving the sequel a 93 percent rating on Rotten Tomatoes. It performed 14% higher than the $43 million opening weekend for the original movie four years ago. In addition to its domestic grossing, it picked up $24.8 million from 26 international territories.
According to Variety, Eric Wold, an analyst with B. Riley and Company, said, “The stock is definitely going to being volatile to opening weekends given that they only have three movies per year and they’re not diversified enough with TV and other things to help offset weaker openings.”
The Dragon sequel was supposed to be the company’s jump out of the major rut they have been in. Forbes noted that year to date, DreamWorks has fallen more than 30 percent since 2013.
“Where it finishes is more important than where it starts,” said Marla Backer, an analyst with Ascendiant Capital Markets. “It’s a disappointing debut, but does it signal the film will fall short? I’m not sure.”
Perhaps as more films make their way to cinemas, DreamWork’s luck will turn around. The next animated film to open is Planes: Fire & Rescue, which doesn’t land in theaters until next month, July 18th.
