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Mattel Hopes Barbie Movie Will Boost Sales and Stock Price
Mattel Takes a Gamble with Barbie Movie
Mattel, the iconic toymaker behind Barbie, is hoping that the release of the new Warner Bros. Discovery movie based on the popular doll will prove its ability to turn intellectual property into a successful movie franchise and boost merchandise sales. Analysts suggest that the success of the Barbie movie will impact Wall Street's perception of Mattel's other film projects in development. Similar to Lions Gate's success with the "Hunger Games," Mattel is looking for a turning point that will drive a surge in its stock price.
Investor Optimism Increases for Mattel
Goldman Sachs analyst Stephen Laszczyk notes that the release of the Barbie movie is helping to increase investor optimism. He maintains a buy rating on Mattel, while keeping a neutral rating on rival toy company Hasbro. The stock for Mattel has been outperforming Hasbro, but still has a long way to catch up to its market value, according to analyst Don Bilson.
Shift in Perception of Barbie Brand
Analysts believe that the release of the Barbie movie could have a positive impact on the Barbie brand, which has faced previous criticism for not evolving with society. Jefferies analyst Andrew Uerkwitz suggests that the movie can help boost sales incrementally and foster affinity for the brand among younger generations. Other companies with Barbie-themed products or movie-specific partnerships, such as Five Below, may also benefit from the increased buzz surrounding Barbie.
Box Office Expectations and Impact on Movie Theaters
While the Barbie movie is expected to draw crowds, analysts have differing expectations for its impact on movie theaters. Morgan Stanley analyst Benjamin Swinburne believes that the increased film supply can help exceed expectations for Cinemark, despite the uncertainty created by Hollywood union strikes. However, JPMorgan analyst David Karnovsky downgraded Cinemark shares, predicting that the strikes could significantly impact box office performances in late summer or early fall.
In conclusion, the release of the Barbie movie is a critical moment for Mattel as it seeks to prove its ability to turn intellectual property into successful movies. With increased investor optimism and a shift in perception of the Barbie brand, Mattel is hoping for a surge in merchandise sales and stock price. While the movie is expected to have a positive impact on the Barbie brand, its effect on the overall box office and movie theaters remains to be seen.
Conclusion: Potential Impact on New Businesses
The upcoming release of the Barbie movie presents a significant opportunity for new businesses looking to align themselves with the buzz and success surrounding this iconic doll. The positive impact on Mattel's stock price and increased investor optimism indicate a potential boost in sales and overall brand perception. For new businesses that offer Barbie-themed products or have movie-specific partnerships, this could translate into increased customer interest and revenue.
The release of the Barbie movie marks a turning point for Mattel's ability to transform intellectual property into successful movie franchises. This success could further solidify Barbie's position as a cultural icon and open doors for collaborations with new businesses wanting to tap into the popularity of this beloved character.
As the movie aims to evolve the perception of the Barbie brand and resonate with younger audiences, new businesses can take advantage of this shifting perception. Developing products or services that align with the movie's themes and appeal to the target demographic could result in incremental sales and enhanced brand affinity among younger generations.
While the impact on movie theaters is uncertain, the increased film supply brought about by the Barbie movie may exceed expectations for certain cinema chains. This presents an opportunity for new businesses in the entertainment industry to not only benefit from the movie's success but also potentially collaborate with theaters to offer unique experiences or promotions tied to the Barbie franchise.
In conclusion, the Barbie movie's release has the potential to create a ripple effect that extends beyond Mattel. New businesses can leverage the movie's success to align themselves with a popular brand, tap into younger demographics, and explore collaborations within the entertainment industry. It is an opportune time for entrepreneurs to seize the excitement and ride the wave of Barbie's resurgence.
Article First Published at: https://www.cnbc.com/2023/07/21/barbie-is-everywhere-here-are-stocks-benefiting-from-the-highly-anticipated-film.html.svg)
