Mattel’s stock price has been stagnant in recent years as the iconic doll brand has been struggling. This is mainly due to the overall economic restraints and the company’s lack of innovation.
However, as the freshly premiered Barbie movie is poised to be a major box office success, investors are already piling up on Mattel’s stock in anticipation of the movie’s success.
Can the Barbie movie, starring Margot Robbie as Barbie and Ryan Gosling as Ken, be a game changer for Mattel stock?
Battle Of The Movies: Will Barbie Save The Day?
In the past, movies based on toys have often been successful at boosting the sales of the toys themselves. For example, the Transformer movie led to a surge in sales of Transformers toys and the Hasbro stock increased more than 100% in the next couple of years after its release.
Similar scenarios were with the Toy Story movies increasing the sales of Toy Story toys, pushing the Mattel stock higher.
The Barbie movie – released on July 21st – already smashed all box office expectations with USD 155 million sales to land the biggest debut of the year. The movie is introducing the brand to a new generation of fans, and it could also generate excitement and buzz around the dolls. If Barbie continues to do well at the international box office, it could lead to an increase in sales of Barbie dolls, which could reflect in Mattel’s stock price.
The opening weekend of the Barbie movie has already surpassed the USD 108 million opening weekend of Transformers: Revenge of the Fallen. At this pace, the Barbie movie has the potential to become the highest-grossing movie based on a toy of all time.
The current record holder is the Lego Movie, which grossed over USD 468 million worldwide. If the Barbie movie can continue its strong performance, it could easily surpass the Lego Movie’s box office in total.
Mattel Is Back In Business
According to Yahoo! Finance, Stifel analyst Drew Crum predicted even before the movie released that Mattel’s profits this year may increase by a 10-cent profit. This is reflected in the sales and profits of the demand for Barbie dolls and licensing fees earned on garments as well as other movie-related merchandise
And this projection seems to ring true.
The company is buying back its own shares for the first time in nine years, a clear sign that it is confident about its future. The stock is also trading at a bargain price historically, making it more attractive for new long-term investors.
The Barbie movie could be a game changer for Mattel’s stock valuations, as analysts are anticipating that this new Barbie movie could further skyrocket global doll sales to USD 14 billion by 2027.
Mattel Stock Chart Analysis
Mattel (MAT) stock chart has been trading in a long-term range between 10 and 47 for over two decades. Currently, the price sits around USD 21 per share and possibly forming a higher-low, which is a bullish price pattern, just above the bottom of this range.
If the Barbie movie is a success it could lead to a surge in Mattel stock, potentially challenging the 2022 high of USD 26. If the bulls are able to break through that resistance level, Mattel stock could be on the verge of a major breakout, potentially reaching the USD 40 resistance area.
Investors who are interested in Mattel should keep an eye on the Barbie movie’s performance, as it could be a major catalyst for the company’s stock price.
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