Digital Domain Media Group Inc. (DDMG:US), creator of a lifelike Tupac Shakur visual effect seen onstage at the Coachella music festival, has gained 48 percent since a performance on April 15 showcased the technology.
Digital Domain, a special-effects company based in Port St. Lucie, Florida, climbed (DDMG:US) 18 percent to $7.55 at the close in New York, extending its gain from $5.11 on April 13, the last trading day before the performance in California.
Video showing Shakur, who died in 1996, seeming to perform onstage with rappers Dr. Dre and Snoop Dogg, has appeared on cable news channels including Time Warner Inc. (TWX:US)’s CNN and Comcast Corp. (CMCSA:US)’s CNBC, and has been a top draw on Google Inc. (GOOG:US)’s YouTube. Dr. Dre may tour with the Tupac hologram, said Tony Wible, an analyst at Janney Montgomery Scott LLC.
“Their long-term goal is to be the next Pixar,” said Wible, referring to the Walt Disney Co. animation studio that produced the “Toy Story” movies. “And there’s reason to believe they can go in that direction with the talent they have hired.”
Shannon Burns, vice president of investor relations for Digital Domain, said the company had agreed with Dr. Dre not to discuss the technology until after this weekend.
Digital Domain is co-producing a movie, “Ender’s Game,” with Lions Gate Entertainment Corp. (LGF:US)’s Summit film unit, and is expanding into China and Abu Dhabi, Wible said. The company won an Oscar in 2009 for its work on “The Curious Case of Benjamin Button,” in which Brad Pitt’s character ages backward.
The Tupac character, a holographic projection, is scheduled to perform again on April 22 during the second weekend of the music festival, located about 23 miles (37 kilometers) east of Palm Springs, California.
“They have an animation slate that’s building momentum and now people are seeing its technology can be used in other areas,” said Wible, who recommends buying the shares. “People are now seeing commercial applications for this hologram.”
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