Barbie fever means retail investor boost for Mattel

Mattel (MAT) surged in popularity among Plum’s retail investors in July with the runaway success of the Barbie Movie.

The latest stats from smart money app Plum show that Mattel rose to become the 7th most popular stock on Plum in w/c 10th July 2023, as the marketing around the movie got well underway. It remains among Plum’s most popular 15 stocks, outpacing other household names such as PepsiCo (PEP) and the Walt Disney company (DIS).

The company, a manufacturing and entertainment company focused on toys, will be looking to boost sales following the success of the Barbie Movie. The film had a $150m marketing budget and was one of the top trending topics around the world in the run up to the premiere on 21st July.

Rachel Sondhi, Product Manager at Plum said, “Our group of the top 10 most popular stocks has been dominated typically by big tech, so the arrival of Mattel shows to what great extent it’s captured the imagination of our retail investors.

“It’s not uncommon for investors to select stocks based on companies that they’re familiar with, and Mattel houses some of the most iconic and popular brands. As well as Barbie of course, Mattel is home to Fisher-Price, Hot Wheels and Uno so investors will be excited about how Mattel will look to monetise these brands as well. Especially as the success of the film has done Mattel’s share price no harm, with the stock rising by 6% in July.

“The arrival of the Barbie film heralds the arrival of a new strategy for Mattel. The firm is clear it wants to unlock the full value of its IP and develop its offering outside of toys, to become a fully fledged entertainment provider. According to a recent New Yorker article, the company has announced 13 new films already with a total of 45 movies in some stage of development, featuring the likes of He-Man, Barney and Polly Pocket. The question is whether capturing the cultural zeitgeist with the Barbie film is a flash in the pan, or if Mattel will enjoy sustained success with its other brands and follow in the footsteps of Disney and its exceptional use of Marvel assets.”

Findings based on buy orders on the Plum platform from 12 June to 6 August 2023.