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Pixar toys with investors
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October 9, 1996: 8:07 p.m. ET
Hot IPO cools off with time, but things may be looking up
From Correspondent Beverly Schuch
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NEW YORK (CNNfn) - Pixar was one of 619 initial public offerings to come to market this year. And while the stock soared on the hype surrounding the high tech industry, it has since cooled off.
Investors may have been overexcited when they snapped up shares of Pixar, founded by Apple Computer co-founder Steve Jobs, on its first day of trading. Priced at $22, the stock quickly shot up to $46.
It gave up its early gains, however, and is now trading at about $17.
But Pixar hasn't had a movie out since. Investors overlooked the long product cycle for animated movies.
Pixar takes a long time to finish a product,  according to David Menlow, president of the IPO Financial Network.
"They may be able to cut the time down in half, (but) people want to see an instant gratification result for any investment they get involved in."
The company does have a three picture deal with Walt Disney Co. and the next movie, "Bugs," may provide the boost investors are looking for, said Genni Combes, technology analyst for Hambrect & Quist. (155K WAV) or (155K AIFF)
Pixar shares have seen a little more life recently, bouncing off its all-time low. Investors are  anticipating a Christmas present when the "Toy Story" home video is released before the holidays. The "Toy Story" CD-ROM has already sold more than 275,000 copies. (943K QuickTime movie)
Despite the new releases, disappointing international box office results and increased marketing costs at Pixar may provide further anxieties for investors.
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Pixar
Toy Story
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