DreamWorks Is Still No Disney

Updated
DreamWorks Is Still No Disney

DreamWorks Animation might be getting ahead of itself. I'm not talking about the stock, which understandably jumped 15% since the company's third-quarter earnings announcement made it clear that its Turbo film wouldn't force a huge writedown like Rise of the Guardians did last year.

But, when CEO Jeffrey Katzenburg said in the earnings release that DreamWorks has "now transitioned into a global, diversified family entertainment company," it sounded a bit premature. Sure, DreamWorks is finding big new profit streams, particularly with streaming deals with Netflix . However, the company has a long way to go if it wants to remake itself into a diversified entertainment company that, like Disney , can take a huge box-office flop in stride.

See more in the following video.


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The article DreamWorks Is Still No Disney originally appeared on Fool.com.

Fool contributor Demitrios Kalogeropoulos owns shares of Apple, Walt Disney, and Netflix. The Motley Fool recommends Apple, DreamWorks Animation, Google, Netflix, and Walt Disney and owns shares of Apple, Google, Netflix, and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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