Seeing pink everywhere you go? You’re not alone.
The highly-anticipated “Barbie” movie is set to hit the screens this Friday and just about every store I walk into seems to have some sort of candy-coated pink display promoting Barbie-branded products.
From “The Super Mario Bros. Movie” to “Dungeons & Dragons: Honor Among Thieves,” this latest toy-inspired blockbuster is in line with a massive trend we’ve been following in 2023.
Classic toy and game properties are turning digital – winning over a new generation of kids as well as adults, who get transported back in time when they were relics of their youth.
Call it a rejuvenated commitment to nostalgic pop culture.
And with A-listers Margot Robbie and Ryan Gosling starting as Barbie and Ken, director Greta Gerwig at the helm, and a $145 million budget, the 2023 big-screen rendition of Barbie is expected to be a major hit…
One that could be worth a potential $100 million during opening weekend alone.
“Barbie” capitalizes on one of the most recognizable toys in the world: the Barbie doll.
Since she was first introduced in 1959 by toymaker Mattel (MAT), Barbie has evolved into an entire multimedia franchise now worth an estimated $700 million.
Social media is buzzing with excitement over the film’s release.
Consumer mentions of Barbie have more than doubled on both a year-over-year and quarter-over-quarter basis:
But here at LikeFolio, we’re more interested in whether the “Barbie Boom” is creating a real opportunity for you to profit.
As one of Mattel’s top three best-selling brands, Barbie sales are critical to the company’s success.
And after a bad 2022, Mattel needs this Barbie boost…
Life in Plastic… It’s Fantastic
Barbie hit a bit of a rut in 2022. Worldwide Barbie sales fell nearly 13% from the year prior. And this year wasn’t looking much better, based on first-quarter results.
In fact, Mattel reported a 41% drop in Barbie sales year-over-year for the three months ended March 31.
Mattel is betting big on the cultural conversation around Barbie to materialize in strong profit figures. And this movie could be just what it needed.
Because the opportunity for Mattel goes way beyond toy sales.
Being the fashion icon Barbie is, Mattel was savvy to ink Barbie apparel deals with retailers, including The Gap (GPS) and fast-fashion house Forever 21.
The officially-licensed Gap × Barbie™ and F21 x Barbie collections offer something for kids, adults, and Barbie dolls alike:
You can also find all sorts of Barbie-branded makeup and hair products at makeup retailers like Ulta (ULTA) and Sephora.
And for the truly Barbie-obsessed, Airbnb (ABNB) rented out a very real Barbie Malibu DreamHouse.
Seriously, you can’t make this stuff up.
So, besides the shot to the arm this “Barbie” movie should give doll sales, Mattel will also take home licensing fees on officially-licensed Barbie product sales.
Wall Street is optimistic it could work: Mattel’s stock has surged by 15% over the past month fueled by the hype around the upcoming “Barbie” movie.
And LikeFolio data backs up that bullish momentum.
Social media mentions of Mattel products are up 25% year over year, while Purchase Intent mentions for Mattel have increased by 16%:
While we can’t speak for how good the movie will turn out, as an opportunity, Mattel is sitting pretty – for now.
Until next time,
Andy Swan
Founder, LikeFolio
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