We should have anticipated the Barbie craze. With more than a billion Barbie dolls sold since 1959, we should have anticipated that her first live-action movie would be a blockbuster — which it was. Even better, there are still plenty of stocks benefitting from the “Barbie” movie craze.
In the U.S., opening weekend sales soared to $155 million, well above projections for $90 million to $110 million. Globally, ticket sales exploded out of the box to $337 million. That’s on top of the probable millions being raked in from Barbie partnerships, including clothing and footwear deals with Bloomingdale’s and Gap (NYSE:GPS), for example. There are even Barbie watches, hair accessories, jewelry, glassware, rugs, candles and luggage. In fact, the list goes on and on.
Better, with the success, analysts say doll sales could benefit, too. In fact, Goldman Sachs analyst Stephen Laszczyk said, “We believe that toy sales will benefit from a ‘halo effect’ over the medium-to-longer-term as adults, who may gain a renewed affinity for the brand because of the movie, become more inclined to gift Barbie with the next occasion. As a result, we believe that it is more likely that Barbie’s seasonal sales cycle is amplified as a result of the movie rather than altered by a near-term spike in demand.”
Here are three top stocks benefitting from the “Barbie” movie craze.
Stocks Benefitting from the “Barbie” Movie Craze: Mattel (MAT)
One of the top stocks benefitting from the “Barbie” movie craze is Mattel (NASDAQ:MAT). While the stock has already priced in a good deal of success, it could see higher highs, especially with more films in the works. According to The New Yorker, the company has another 45 toy-related movies in development, including Barney, Hot Wheels, Rock ‘Em Stock ‘Em Robots, He-Man: Masters of the Universe, and more. If the marketing, film sales and partnerships are as successful as Barbie 45x over, shares of Mattel could race even higher.
After all, “movie and content and digital gaming and extensions really give us the opportunity to broaden our reach, drive revenue [and] monetize the brand as a franchise,” said Chief Executive Officer Ynon Kreiz in a recent earnings call.
Analysts believe Mattel could see profit margins well over 80% for its Barbie-licensed products. UBS analyst Arpiné Kocharyan, for example, expects Mattel to bring in about $130 million in Barbie royalties, which could boost MAT’s earnings per share (EPS). Even better, Mattel has said it expects to resume share repurchases in 2023, with $200 million remaining under a current program.
Crocs (CROX)
Retailers like Crocs (NASDAQ:CROX) are all in on the Barbie theme, too. In fact, the company just launched its pink Barbie-themed clogs and sandals. Hopefully, that will have a good impact on earnings moving forward.
Even better, CROX earnings have been solid. In its latest quarter, the company saw a 36% jump in sales year-over-year (YOY), which included a 105% jump in HEYDUDE franchise sales. Plus, management now says it expects to see $4 billion in annual revenue this year, up about 12% YOY.
Moving forward, “by 2027, analysts believe Crocs could generate total sales of $5.9 billion. That equates to a 64% rise from 2022’s nearly $3.6 billion. This puts the business squarely in the category of growth companies,” as noted by Motley Fool contributor Neil Patel.
AMC Entertainment (AMC)
There are two ways to trade AMC Entertainment (NYSE:AMC). One, we can trade the short-term momentum of the “Barbie,” “Oppenheimer,” and “Mission Impossible” films. Then, once the momentum fades and investors seek the next big blockbuster film of the year, which they may not find, we can trade the short side of AMC, too. Inevitably, the AMC stock will pull back and resume its downtrend with limited visibility, high cash burn and lackluster earnings.
AMC is a good short-term bet whenever there’s a blockbuster film on the way. But once the momentum fades, so will the stock. Even Barbie can’t keep this stock up. I’d love to be optimistic about AMC, but we have to face the facts with it. I’m trying to make you money.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
