Cartoon Brew readers might have seen this coming a mile away, but not Wall Street. The business world is finally realizing that 3-D may not be the revolution that Hollywood’s snake oil salesmen promised it would be. Yesterday, shares in 3-D technology licensor provider RealD sank nearly 16% to $15.48. It’s significant because this is the first time the stock is trading below its 2010 IPO price of $16 a share. The stock was trading at over $35 just two months ago.
The stock plunged following the company’s first quarter report which topped analysts’ expectations but fell short of estimates on Wall Street. Analysts have already begun asking whether it’s game over for 3-D.
Another big loser in the film technology arena this week was IMAX. Its shares slipped 6% yesterday to under $19. IMAX’s stock is down a whopping 41% in the month of July, though some analysts are still bullish on the company’s future.
The problem with RealD’s approach (as well as IMAX’s to some extent) is that it up-sells movies without adding significant value to the experience. I’ve seen 3-D films only a handful of times and I’d be hard-pressed to recall which films they were, much less point out a moment where the 3-D made the film richer or more fulfilling.