Hasbro Stock Is Not Playing Around

Hasbro Stock Is Not Playing Around

Happy Friday folks! 

Our analysts definitely deserve a nice break after that manic week. With almost all of Big Tech, Tesla, and many other industry leaders presenting their books, there was a lot of noise on Wall Street. 

If that wasn’t enough to keep our wheels turning, sprinkled on top of the busy week were Duolingo and Robinhood’s blockbuster IPOs. While Robinhood’s debut closed up rather unimpressively, the language learning app gained 36% on its IPO day valuing it at nearly $5 billion. 

We recently discussed the two brand-centric firms and asked the burning question of whether now is the right time to buy shares in the newly-listed companies. Read our insight ‘IPO Mania Hits The Market.’  

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Hasbro (HAS) +8.7%

Zoom Communications (ZM) +7.5%

Cognizant Technology Solutions (CTSH) +6.7%

Align Technology (ALGN) +6.1%

Tripadvisor (TRIP) +5.6%

Moving Down ⬇️

Activision Blizzard (ATVI) -8.7%

PayPal (PYPL) -8.2%

Duluth Trading (DLTH) -8.1%

Spotify (SPOT) -7.5%

Shopify (SHOP) -7.2%

What investors need to know

Hasbro (HAS) +8.7% 

Entertaining children became a key priority for parents over the past year and this was evidenced once again in the toymaker’s impressive Q2 results. Hasbro posted better-than-expected earnings, reporting a 54% jump to $1.32 billion in revenue fueled by rising sales for its ‘Dungeons & Dragons’ game. In addition, as vaccine rollouts picked up pace resulting in the easing of lockdown restrictions, the Monopoly maker’s production studio and other movie businesses jumped 47%. Hasbro acquired Entertainment One (eOne) just before the pandemic and shareholders were pleased to hear its back to business and thriving. 

Zoom Communications (ZM) +7.5% 

Bank of America naming Zoom Video a top pick in the corporate communication sector sent the video conferencing giant's stock flying this week. The financial service leader explained that Zoom acquiring Five9, a leading cloud contact center, is a “game-changer” for business communications. At $15 billion, the acquisition looked expensive. However, Zoom is wisely exploiting its high share price  with  the all-stock deal to build a best-in-class cloud communications portfolio to gain more market share in the highly lucrative corporate communication space. With prospects of a full return to offices dwindling, given many employees' preference for a hybrid or fully remote work environment, — plus the Delta variant spreading — Zoom is looking even more attractive to investors. 

Align Technology (ALGN) +6.1%

Strong sales of its invisalign teeth-straighteners to teenagers, up 156% year-over-year, helped Align stock jump this week. Align recorded diluted earnings of $3.04 per share on total sales of $1.01 billion in Q2, up 187% from year-ago losses when clients put off orthodontist visits during the pandemic. As the world begins to reopen, cosmetic dentistry is back on the priority list which should boost further growth for Align. The firm has high hopes for the next few months, guiding for sales of between $3.85 billion to $3.95 billion for the full year. 

Activision Blizzard (ATVI) -8.7% 

The world’s largest video game company is in the middle of a media scandal concerning the recent allegations of sexual harassment made against it. Activision stated that the claims were “distorted, and in many cases false descriptions of Blizzard’s past.” However, according to media reports, more than 2,000 current and former employees have signed a letter denouncing Activision’s response to the lawsuit. The issues seem to be affecting business as ‘World of Warcraft’ designer, Jeff Hamilton, tweeted that “almost no work” is being done on the game as a result of the allegations. Not only is the news a terrible PR issue, shareholders are becoming increasingly worried now that it is also affecting the businesses production. 

Shopify (SHOP) -7.2%

Just like most of the Big Tech giants so far, Shopify is also warning of slowing growth ahead. Despite reporting revenues that blew past $1 billion, shareholders focused on the Canadian firm’s warning that it expects growth to slow for the rest of the year. As retailers return to their physical stores as the economy reopens, a slowdown is Shopify’s growth was to be expected. Instead of concentrating on this, shareholders should remember that Shopify still has huge growth potential. Plus, as Shopify CFO, Amy Shapero’s, puts it, the company is “well equipped to seize the opportunities presented in a post-pandemic retail era.”

NicoleNicole

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