Mattel’s stock has experienced a significant surge in recent weeks, and the unlikely reason behind it is the hype surrounding the upcoming Barbie movie. While other big-name stocks like Nvidia and Apple have been performing well, it’s the classic toymaker that has captured investors’ attention.
Shares of Mattel have risen by 15% over the past month, outperforming competitors like Hasbro. The company’s stock price growth is a testament to the cultural relevance and anticipation surrounding the live-action Barbie film, which features Margot Robbie as Barbie and Ryan Gosling as Ken. Directed by Greta Gerwig, the movie reportedly had a budget of up to $100 million.
Barbie is a cultural conversation at this point, said Mattel COO Richard Dickson. Over the past five years, Dickson has worked to reinvent the Barbie brand and ensure its alignment with current cultural trends. The success of the upcoming movie is expected to translate into strong profits for Mattel.
One way Mattel is capitalizing on the Barbie movie is through licensing the Barbie name to various merchandise items tied to the film’s release. The company has partnered with specialty retailer Gap to offer a Barbie apparel line, which includes everything from pink hoodies to pet clothing. Fast fashion house Forever 21 has also released a Barbie-inspired clothing collection.
But the main source of profit is likely to come from the movie itself. Produced by Mattel Films and distributed by Warner Bros., the film has high expectations. Stifel analyst Drew Crum estimated that the Barbie movie could bring in an impressive $400 million at the box office, up from his previous estimate of $325 million. A successful debut would not only mean higher profits for Mattel but also validate the company’s strategy of leveraging intellectual property for toy business.
In addition to the financial benefits, a successful Barbie movie release could enhance the prospects of Mattel’s other content projects in development, such as the Warner Bros. movie based on the Matchbox toy car brand. With investors betting on the potential success of these projects, Mattel is poised to benefit from its strong brand and the quality of the movies it plans to produce in collaboration with lead talent in Hollywood.
Mattel CEO Ynon Kreiz emphasized the importance of the Barbie brand, stating that it is one of the company’s three power brands and serves as a showcase for future ventures.
Overall, Mattel’s stock surge can be attributed to the excitement surrounding the upcoming Barbie movie. With a strong profit outlook from both merchandise licensing and box office performance, the company is poised to capitalize on the cultural relevance and enduring appeal of the iconic Barbie brand. As the movie’s release date approaches, investors and fans alike eagerly await the arrival of this highly anticipated film.
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. For the latest stock market news and in-depth analysis, including events that impact stock prices, please visit Yahoo Finance.
Disclaimer: The content provided is for informational purposes only and should not be interpreted as financial advice. Investing in stocks carries risks, and individuals should conduct their own research and consult with a financial advisor before making any investment decisions.
