Just a few weeks ago, Hatchimals were the hottest toy of the holiday season. Every kid wanted one because, well, every other kid wanted one. Parents around the country ran from toy store to toy store in search of these fabled cute companions, with only the luckiest moms and dads striking holiday gift gold.
Eventually, Spin Master realized they couldn’t keep up with demand for the toys, and the resale value of a single Hatchimal went for more than its MSRP. The Canadian toy company will soon ship more of their popular toys, but it’s already after Christmas and the demand for Hatchimals will likely diminish.
Unfortunately for Spin Master, some existing Hatchimals owners aren’t too happy with their toy pets. Even worse, it’s affecting the company’s already-troubled stock price.
Hatchimals are cute, interactive toys that hatch out of their shells and basically act as less threatening Furbys.
They come in a shell, eventually escape said shell, and have basic interactive functions that can keep kids engaged for hours. Every kid wanted one for the holidays, apparently, which is completely lost on this writer.
Unfortunately, those Hatchimals aren’t all hatching.
A defect in some products prevents the toys from hatching. Spin Master told CNN Money that “with toys that incorporate a high level of technology, there are also some cases where the product may not perform as well as expected.” Customers are obviously irate, and Spin Master is adding customer service staff to help with the issues, but with supply currently low or non-existent, quickly replacing defective Hatchimals isn’t going to be easy.
Demand for Hatchimals might be high, but demand for Spin Master stock is lower.
The Toronto Stock Exchange-listed company is currently down 4.97%. Sure, their stock is up by over 41% for the year, but in the last month — during peak Hatchimals hype — their stock declined by over 13%.
It’s amazing that the company making the most popular holiday toy isn’t doing too hot in the market right now. Once Spin Master and they retailers receive more Hatchimals, we might see demand for both the toy and stock to increase. Until then, however, some children are stuck with a big, dumb egg.