Why DreamWorks Animation (DWA) Stock Is Sinking Today

NEW YORK (TheStreet) -- Shares of DreamWorks Animation (DWA) are sinking 3.23% to $27.27 in morning trading, continuing the tumble from yesterday's after-hours trading following a report by The Wall Street Journal that talks have slowed with Japanese Internet company Softbank (SFTBF) .

Negotiations could restart for a deal instead of an outright takeover, possibly for a content partnership, noted the Journal.

Softbank, which owns 32% of Alibaba Group Holding (BABA) , is in a position to acquire other firms with its recent influx of funds from the Alibaba IPO.

Separately, TheStreet Ratings team rates DREAMWORKS ANIMATION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DREAMWORKS ANIMATION INC (DWA) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

Why You Should Know the Cravath Lawyer Behind Big Media Mergers

Hasbro Launches First YouTube Series, New Toy Brand to Follow

Royal Caribbean, Mattel Target Teens, Kids Through Online Content