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Barbie mania is impacting the stock market

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The Mattel doll is taking the stock market for a sparkly pink, nostalgia-fueled ride. But will it last?

The latest Barbie movie isn't just driving fashion trends on TikTok, it's also having a notable impact on the stock market.

The international release of Greta Gerwig's Barbie over the weekend has beaten even optimistic estimates, raking in $21.55 million at the Australian box office and US$356.3 million globally.

Early estimates show the combined box-office release of Barbie and Oppenheimer, dubbed "Barbenheimer" by some clever folk, has broken several cinema records worldwide, including the highest grossing weekend for a female director and comedy release. Barbie, obviously, not Oppenheimer.

It is the fourth highest opening weekend in box office history.

The resulting sales frenzy, from cinema tickets to toy merchandise, has had a notable effect on several related stocks.

US cinema chain AMC Entertainment saw shares soar a whopping 32% overnight Monday, while toy company Mattel has seen its stock price jump 18.9% in the last month and over 2% overnight.

Warner Bros, the distributor responsible for Barbie, has had a comparatively muted response after recent analyst downgrades and Hollywood strikes, with shares up 7% in the last month, but falling 2% over the weekend. Oppenheimer's Universal Pictures fared a little better, rising just under 1% overnight.

1-month performance:

  • Mattel Inc (NASDAQ: MAT): +18.9%
  • Warner Bros Warner Bros Discovery Inc (NASDAQ: WBD): +7.05%
  • AMC Entertainment (NYSE: AMC): +45%
  • Universal Pictures (NASDAQ: CMCSA): +6.73%

Comparatively, the benchmark S&P500 and NASDAQ indices rose just over 5% in the last month.

Should you buy Barbie stock?

It's not uncommon for stocks to rise when something is getting a lot of hype.

Unfortunately, hype-fueled bull markets have a history of being short lived.

The stock market is an emotional beast that can swing wildly depending on how the majority of investors are feeling - whether that's exuberance or fear.

"Barbie stocks" such as Warner Bros and Mattel Inc are also highly diversified companies with numerous businesses and franchises. '

In other words, they have more than Barbie going on and the Barbie euphoria isn't going to last forever.

If you're interested in investing in any of the stocks, make sure to weigh your own personal circumstances and do your homework by checking out the company financials and earnings reports.

Looking for a low-cost online broker to invest in the stock market? Compare share trading platforms to start investing in stocks and ETFs.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involve substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances and obtain your own advice before making any trades.

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