DreamWorks Animation (DWA), a cartoon studio that competes with Disney (DIS), News Corp. (NWS), and others, saw its stock sold off during Wednesday's market session. Wall Street was not excited by the latest earnings data. But does this mean the company should now be considered a pariah?

The stock closed yesterday at $41.38. This represented a decline of 98 cents, or 2.3%. The shares hit an intraday low of $40.07. Talk about pessimistic. Then again, maybe the pessimism will turn out to be short-term in nature. After all, the one-year chart reflects a bullish tone.

DreamWorks Animation (DWA), a producer of computer-animated movies that competes with Disney (DIS), News Corp. (NWS), and others, closed about a nickel away from the 52-week high on Monday. At $39.20, is the stock getting ahead of itself?

Possibly, but there's much to consider with this situation. Although I don't relish looking at stocks when they've already made a move, you have to give some credit to DreamWorks Animation and its film-franchise business model. Indeed, the company is creating valuable intellectual properties capable of spinning off future sequels for purposes of capturing cash flow. Not only that, but television is set to become a larger part of the business plan.