Yahoo Finance Live discusses a surge in shares of Hasbro due to investor confidence about growth within the digital gaming sector.
- Toy sales are declining at the company. But the Street is actually looking past that in this latest earnings report, with shares moving to the upside. It's one of the top performers in the S&P today. And here's what is giving investors confidence: growth in digital gaming. Sales from its "Wizards of the Coast" in the digital gaming division jumping 12%. That partially offset the 23% decline that Hasbro did report in consumer products. Another key part of this report was that the Street actually liked the guidance there. Despite a drop in sales, Hasbro very confident, maintaining its full-year revenue and operating margins. So they are expecting improvement in the second half of the year. Hopefully, consumers keep spending.
- I know, right? I mean, I have to admit I saw some of the data on Hasbro and I was surprised that it was in digital. I didn't even know they were in digital, in the digital space. But clearly they got to ramp up there, because they're competing with Roblox. And that's where the eyeballs are. I mean, you guys know I have a small kid, 7, and he's already getting away from the toys, the tactile toys. He likes sports, but he prefers digital when it comes to things to play with outside of sports.
- Hasbro not alone in a solid beat, because Mattel reported today and they're up almost 7%. They both had inventory issues. But there's more overlap. They're also working together. Hasbro and Mattel, a couple of days ago announcing collaboration, which you don't really see in any other industry. Imagine United and American, or whether it's Coke and Pepsi. So they're going to have collaborations like Barbie Monopoly, like Transformers Uno in a very interesting partnership. Some feel that there is a merger down the road, but just whispers at this point.