Why did Mattel's stock price fall?

Mattel's stock price fell because the company reported holiday results that missed analysts' estimates and issued a 2026 profit forecast that was lower than anticipated.

What did Mattel announce regarding its mobile gaming business?

Mattel announced it is buying its partner NetEase Inc.'s stake in their mobile gaming joint venture to accelerate growth in that sector.

What is Mattel's sales and earnings forecast for 2026?

For 2026, Mattel expects sales to grow between 3% and 6%, with earnings per share, excluding certain items, projected at $1.18 to $1.30.

Home / Business and Economy / Mattel's Holiday Slump Sparks Stock Plunge

Mattel's Holiday Slump Sparks Stock Plunge

11 Feb

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Summary

Mattel shares dropped significantly after missing holiday sales estimates.
The toy company's 2026 profit forecast also fell below expectations.
Mattel acquired NetEase's stake in a mobile gaming joint venture.

Mattel's Holiday Slump Sparks Stock Plunge

Mattel Inc. experienced a significant stock decline in extended trading after reporting holiday quarter results that failed to meet analyst expectations. The company's shares dropped sharply as it also issued a 2026 forecast indicating lower anticipated profits.

Fourth-quarter earnings per share, excluding certain items, were reported at 39 cents, a figure below the 54-cent average estimated by analysts. Although sales increased to $1.77 billion, this also fell short of the projected $1.84 billion, with a notable shortfall in US December sales contributing to the miss.

In a strategic move to boost its mobile-gaming presence, Mattel announced its intention to acquire its partner NetEase Inc.'s stake in their joint venture for $159 million. This acquisition is expected to accelerate the development and release of mobile games based on Mattel's intellectual property.