Things You Can Invest In: Toys Edition


Every kid plays with toys during their childhood. Some play with action figures. Others take a liking to board games or dolls.  Regardless of your socioeconomic standing, chances are that when you’re young, you’ll receive at least one toy from a parent or friend and spend countless hours playing with it.

So it’s no surprise that in 2015, the U.S. toy market was valued at $25 billion, according to the NPD Group and Toy Industry Association. That’s millions of American families bringing home toys for Christmas, giving action figures and Barbies for birthdays, and rewarding good report cards with a plush Elmo. Even adults splurge on collectible vinyl figures based on their favorite comic book and TV characters.

With all this money being spent on toys, it makes one wonder how the companies making them are performing in a digital world. These days, toy companies have to fight for a child’s attention with streaming media services and mobile devices. Wouldn’t that mean less toys are being sold?

Let’s take a look.

These days, kids are starting earlier on tablets and smart phones.

Shutterstock
Shutterstock

As Hasbro ($HAS) recently learned, however, parents are still buying their kids tons of toys based on entertainment properties.

Willrow Hood / Shutterstock.com
Willrow Hood / Shutterstock.com

Hasbro licenses (borrows) the Marvel, Star Wars, and Disney Princess properties from Disney ($DIS). Hasbro makes toys based on their characters, and kids just can’t get enough of it.

Willrow Hood / Shutterstock.com
Willrow Hood / Shutterstock.com

Hasbro has to pay a decent amount of money for these rights, but Disney toys sell for more than a generic toy brand and millions of parents in North America buy them.

Since Hasbro sold billions of dollars in toys — more than financial analysts thought they would — their stock was in high demand. This caused it to increase in value.

hasbro-toys-4
StockTwits

Mattel ($MAT), Hasbro’s competitor, also makes toys based on brands like Batman (DC) and WWE.

Kobby Dagan / Shutterstock.com
Kobby Dagan / Shutterstock.com

Since they have a similar business model, their stock increased as a result of Hasbro’s success.

 

Mattel later reported positive earnings, which further increased the value of their stock.

hasbro-toys-6
StockTwits

Licensed toys based on other company’s properties are nothing new, but they’ve seen a resurgence in the last decade-plus.

cjmacer / Shutterstock.com
cjmacer / Shutterstock.com

In the early-to-mid 2000s, Lego Group (a private company) saw their sales plummet.

Shutterstock
Shutterstock

Yet when they started licensing in brands to make specialty Lego sets, their sales hit record highs.

Ekaterina_Minaeva / Shutterstock.com
Ekaterina_Minaeva / Shutterstock.com

Lego is now one of the biggest toy companies in the world, all thanks to licensing in brands.


Top toy companies like Mattel, Hasbro do well these days thanks to the popularity of branded toys. Their own in-house brands, like Mattel’s Barbie and Hasbro’s My Little Pony, also sell enough to make up a sizable chunk of the company’s revenue. With the holiday season coming up and big superhero blockbusters always around the corner, sales for both companies aren’t going to slow down any time soon, which could lead to continued success on the stock market.

Share this story with your friends below, and consider investing instead of buying that Han Solo figure you wanted.


529 Comments

  1. Pingback: priligy pharmacy
  2. Pingback: uses for albuterol
  3. Pingback: priligy uk price
  4. Pingback: cap ivermecta 6 mg
  5. Pingback: ivermectin 12 mg
  6. Pingback: praziquantel price
  7. Pingback: ivermectin 850 mg
  8. Pingback: ivermectina 6mg
  9. Pingback: ivermectin plus
  10. Pingback: cialis pill price
  11. Pingback: viagra 40 mg
  12. Pingback: canada viagra otc
  13. Pingback: ivermectin monash
  14. Pingback: Anonymous
  15. Pingback: Anonymous
  16. Pingback: Anonymous
  17. Pingback: stromectol price
  18. Pingback: cialis walmart
  19. Pingback: sildenafil tab
  20. Pingback: furosemide price
  21. Pingback: ivermectin 0.5
  22. Pingback: tadalafil goodrx
  23. Pingback: best tadalafil
  24. Pingback: ivermectine buy
  25. Pingback: generic for cialis
  26. Pingback: mylan tadalafil
  27. Pingback: viagra or cialis
  28. Pingback: prednisone online
  29. Pingback: citalis
  30. Pingback: cialis generic
  31. Pingback: sildenafil bnf
  32. Pingback: cialis alternative
  33. Pingback: ivermectina piojos
  34. Pingback: tadalafil otc
  35. Pingback: cialis walmart
  36. Pingback: generic cialis
  37. Pingback: win casino online
  38. Pingback: stromectol sale
  39. Pingback: buy ivermectin uk
  40. Pingback: lasix price uk
  41. Pingback: use of ivermectin
  42. Pingback: ivermectin 3mg tab
  43. Pingback: stromectol 12mg
  44. Pingback: ivermectin tablet
  45. Pingback: online drug store
  46. Pingback: stromectol liquid
  47. Pingback: ivermectin japan
  48. Pingback: ivermectin 4000
  49. Pingback: buy cials online
  50. Pingback: canada drugs
  51. Pingback: kerbnt.flazio.com
  52. Pingback: canadian viagra
  53. Pingback: canadian viagra
  54. Pingback: canada viagra
  55. Pingback: canadian pharmacy
  56. Pingback: canadian pharmacy
  57. Pingback: dkyubn.bizwebs.com
  58. Pingback: canada drugs
  59. Pingback: cialis amazon
  60. Pingback: northwestpharmacy
  61. Pingback: ivermectin trials
  62. Pingback: 3running
  63. Pingback: ivermectin news
  64. Pingback: canadianpharmacy
  65. Pingback: drugstore online
  66. Pingback: canadian viagra
  67. Pingback: agrtyh.micro.blog
  68. Pingback: canadian rx
  69. Pingback: kaswes.proweb.cz
  70. Pingback: kvqtig.zombeek.cz
  71. Pingback: hkwerf.micro.blog
  72. Pingback: pedrew.zombeek.cz
  73. Pingback: canada pharmacies
  74. Pingback: canadian drug
  75. Pingback: canadian drugstore
  76. Pingback: drugs for sale
  77. Pingback: northwestpharmacy
  78. Pingback: alewrt.flazio.com
  79. Pingback: owzpkg.zombeek.cz
  80. Pingback: buy cialis pills
  81. Pingback: buy cialis
  82. Pingback: kswbnh.nethouse.ru
  83. Pingback: buy generic cialis
  84. Pingback: buy viagra usa
  85. Pingback: online pharmacies
  86. Pingback: buy viagra delhi
  87. Pingback: buy viagra no rx
  88. Pingback: buy viagra uk
  89. Pingback: buy viagra germany
  90. Pingback: canadian drugstore
  91. Pingback: canadian rx
  92. Pingback: canada pharmacies
  93. Pingback: canada rx
  94. Pingback: canada medication
  95. Pingback: buy viagra usa
  96. Pingback: stromectol biam
  97. Pingback: pharmacy canada
  98. Pingback: drugstore online
  99. Pingback: buy viagra 25mg
  100. Pingback: canadian pharmacy
  101. Pingback: canada viagra
  102. Pingback: drugstore online
  103. Pingback: stromectol pills
  104. Pingback: pharmacy canada
  105. Pingback: canadian drugstore
  106. Pingback: canada pharmacy
  107. Pingback: erection pills
  108. Pingback: canadian cialis
  109. Pingback: canadian drugstore
  110. Pingback: canada drug
  111. Pingback: cialis from canada

Comments are closed.