Barbie-Mania Is Everywhere — and Mattel’s Stock Has Gone Through the Dreamhouse Roof
Key takeaways
- Barbie just broke records to become the best-ever opening weekend for a female director, and the highest grossing film opening this year so far
- Mattel’s share price rose 16.7% this month as anticipation for the film increased
- Mattel now needs to prove it can capitalize on the hype for long-term success
Newsflash: the Barbie film, directed by Greta Gerwig, just became a record-breaker. It’s the best opening weekend a female-directed movie has ever seen, raking in $155 million at the domestic box office. It’s also the biggest opening weekend of the year, thanks to an incredible marketing campaign and the strength of the Mattel brand.
So, how has Mattel stock fared, and can it capitalize on the boost led by the pink and sparkly film? Let’s dive into the Barbie brand collaborations that have bolstered Mattel’s standing.
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How has Mattel’s stock performed this year?
The Barbie movie is Mattel’s first foray into creating a cinematic universe, with the brand developing 14 other films for its brands, including Polly Pockets and Hot Wheels.
Barbie soon became a cultural and social media phenomenon, helped by the wildly contrasting film Oppenheimer was also opening the same weekend. As a result, Mattel’s share price has gained 16.7% in the last as anticipation for ‘Barbenheimer’ mounted, with the 2023 stock price gains coming in at 18.4%.
With a vast estimated $150 million marketing budget, the Barbie marketing team went all out. Mattel has signed well over 100 film licensing deals with the likes of Crocs, Burger King and Airbnb. Analysts anticipate this could bring in an additional $130 million in royalties for Mattel.
Can Mattel keep the momentum going?
The question on every investor’s lips is: can Mattel keep the Barbie party going long after the opening weekend? Mattel’s second-quarter earnings report is due soon, but the company isn’t expected to beat its guidance for the second half of 2023. Struggling to top the pandemic boom, Mattel’s net sales were down 22% year-on-year for the first quarter.
If Mattel can get it right, the long-term opportunity poses a massive opportunity for the brand. Hot Wheels actually outsold Barbie in Q1 this year, presenting another strong brand for Mattel to push.
But the company also has a rare combination on its side — valuable brand capital and nostalgia. Investors will be looking to see if this is a flash in the pan, or the start of something big for Mattel.
The bottom line
Barbie has been a beloved toy since the 1960s, so everyone has a story from their childhood about the brand. Mattel has some amazing brand capital to make the most of this record-breaking opening weekend and introduce a swathe of Mattel-related content. It can only be a boon for the share price.
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