MAT - Why Mattel Stock Plunged on Thursday
2023-10-26 13:17:09 ET
Leading toy makers Mattel (NASDAQ: MAT) and Hasbro just reported their third-quarter financial results. Mattel benefited enormously from the release of Barbie in July, as sales jumped 9% year over year (7% excluding currency changes).
However, the market was spooked by Hasbro's falling revenue. Broader demand across the toy industry remains weak, and this weighed on both stocks, with Mattel shares down 8% as of 12:33 p.m. ET on Thursday. Should investors be concerned about the toy maker heading into 2024?
Household budgets appear to be tightening as rising interest rates make it more expensive to buy things. Wall Street is clearly concerned that Mattel benefited from a one-time bump in Barbie sales coming off a successful movie launch in the quarter that won't repeat going forward.
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Why Mattel Stock Plunged on Thursday