Mattel (MAT)

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

The companies will develop AI-powered toys and experiences, enhancing product design and supporting Mattel’s shift toward entertainment and tech-driven innovation.

Mattel partners with OpenAI to use artificial intelligence in developing interactive toys and digital experiences, with product announcements expected in 2025.

Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.

Let’s dig into the relative performance of Mattel (NASDAQ:MAT) and its peers as we unravel the now-completed Q1 toys and electronics earnings season.

President Donald Trump has threatened to impose tariffs on Apple Inc. (NASDAQ: AAPL) and Mattel Inc. (NASDAQ: MAT) amid their reluctance to move manufacturing back to the U.S.

Toy manufacturing and entertainment company (NASDAQ:MAT) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 2.1% year on year to $826.6 million. Its non-GAAP loss of $0.03 per share was 70.4% above analysts’ consensus estimates.

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

U.S. inflation rose 2.3% annually in April, with shelter costs up and key goods like used cars and apparel posting monthly price declines.

Shares of Mattel and Hasbro, which had only recently indicated hundreds of millions in higher costs from tariffs, rose 10% and 6%, respectively.

The 145% tariff on Chinese imports, imposed by President Donald Trump, has put Walmart and Target supplier's Huntar Company Inc.'s factory in China at risk of shutting down.

Before Kenvue and Johnson & Johnson, Ruh was at PepsiCo for 17 years.

Mattel shares have surged 9% since Tuesday's open. Investors are responding positively to the company's better-than-expected Q1 earnings.

Markets slide on vaccine regulation fears, trade uncertainty, and cautious earnings despite strong tech and consumer stock moves.