LOS ANGELES (Hollywood Reporter) - Shares of Walt Disney
Co. closed up 1.1 percent on Monday, even though some Wall
Street observers said the $47 million opening-weekend haul for
"Ratatouille" fell below their expectations and might be the
latest sign that animated fare is past its prime.
Bear Stearns analyst Spencer Wang said he had projected a
$50 million tally, with the Street consensus in the $50
million-$60 million range. He added that "Cars" last year
grossed $60 million despite worse reviews.
"This is another sign of our long-held thesis that CG
(computer-generated) animation has passed its peak given
increased competitive output, which has saturated the market,
fragmented market share, and may be driving up costs," Wang
wrote. "As a result, we still think returns in CG will remain
Disney closed at $34.52 on the New York Stock Exchange.
During the past 52 weeks, it has traded from $28.69-$36.79. The
stock had a weaker second quarter, but Goldman Sachs analyst
Anthony Noto recently suggested investors buy it during the
summer, a traditionally sluggish period for it.