Digital Domain Media Group Inc. (DDMG) is the visual-effects company behind the Tupac hologram at the April 15 Coachella Music Festival. The show’s success threw the spotlight on the small firm, which gained 48% in the following week.
Coachella: If you haven’t already, (and you’re not at work) check out this video from last Sunday’s show featuring the ghostly projection of Tupac performing alongside rappers Snoop Dogg and Dr. Dre.
The audience’s excitement from seeing a realistic performance from Tupac Shakur, who has been dead for 15-years, prompted the show to consider a virtual tour. The success has also drawn attention to the potential of DDMG’s patented technology.
Imagine: Did you get the chance to see the Beatles or Elvis perform live, or hear Martin Luther make his famous ‘I Have a Dream’ speech? Or simply want to relive a great experience? It seems you may still have the chance.
Better yet, individuals could one day be active participants in a movie, moving among characters, looking for clues to a mystery, and attending the same posh parties. Surely film companies will see this as one of the next big technological frontiers.
Business Section: Digital Domain Media Group Inc.
These ideas, and many more, are gripping the nation and putting focus on Digital Domain Media Group, whose founders include the famed film-director James Cameron. The company’s IPO was listed on the NYSE in November 2011.
Notable work – other than virtual Tupac – includes visual effects for the film “Titanic,” the “Transformers” series and “The Curious Case of Benjamin Button,” which won an Oscar for visual effects.
Share price rallied 48.35% in the week following the performance, although unsteadily. The most notable changes came from Wednesday’s 15% climb and Friday’s 17.9% rise, although it was diminished slightly by Thursday’s 7.6% drop.
But investors are cautioned that current prices may be misleading. The firm’s IPO was priced at $8.5, a height it hasn’t come close to seeing since. Instead it has been trading between ranges of $5.5-$6.5 per share. And the fact remains that the company’s earnings have been dismal, and in 2011 DDMG operated at a net loss.
When the hype dies down, will the company return to former price levels? Or is this a turning point for a much bigger future?
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Written by Rebecca Lipman.
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