Why Hasbro (HAS) Shares Are Falling Today
What Happened:
Shares of toy and entertainment company Hasbro (NASDAQ:HAS) fell 14.5% in the morning session after the company reported fourth-quarter results with revenue that missed analysts' expectations as its consumer products and entertainment segments declined 25% and 49% year on year. Its Wizards of the Coast and Digital Gaming segment was a silver lining (7% growth) but not enough to move the needle on company-level performance. The company's full-year 2024 EBITDA guidance also missed Wall Street's forecast. On the bright side, Hasbro initiated a quarterly dividend of $0.70 per share, payable on May 15, 2024, to shareholders at the close of business on May 1, 2024. Overall, the results could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hasbro? Access our full analysis report here, it's free.
What is the market telling us:
Hasbro's shares are not very volatile than the market average and over the last year have had only 7 moves greater than 5%. Moves this big are very rare for Hasbro and that is indicating to us that this news had a significant impact on the market's perception of the business.
Hasbro is down 1.6% since the beginning of the year, and at $49.07 per share it is trading 32.7% below its 52-week high of $72.92 from September 2023. Investors who bought $1,000 worth of Hasbro's shares 5 years ago would now be looking at an investment worth $545.63.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
