RealD Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of RealD (NYS: RLD) , whose gear is used to project and view 3-D images, fell more than 21% in early trading and remain down more than 15% as of this writing. The company failed to live up to Wall Street estimates for first-quarter revenue.

So what: For investors, this is just the latest in a string of brutal hits. RealD has suffered 10% or worse down days in May, June, and now twice in July. For the first time, the stock is trading below its IPO price of $16 a share.

Now what: RealD booked $59.6 million in revenue, down $64.5 million in last year's first quarter. Analysts were expecting $78.9 million, probably figuring on increased 3-D demand with the release of Time Warner's (NYS: TWX) Harry Potter and the Deathly Hallows: Part 2 and Walt Disney's (NYS: DIS) Captain America: The First Avenger. Management referenced both films in its earnings report. Neither was enough to carry sales to hoped-for levels. Does it matter? You tell me. Let us know what you think about RealD using the comments box below.

Interested in more info on RealD? Add it to your watchlist .

At the time this article was published Fool contributorTim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He owned shares of Disney and Time Warner at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.Motley Fool newsletter services have recommended buying shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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