Hasbro to raise toy prices to offset costs, WeWork stock jumps on bullish rating
Yahoo Finance's Ines Ferré breaks down trending stock tickers.
Video Transcript
AKIKO FUJITA: And one specific company, Ines, what are you seeing on Hasbro?
INES FERRE: That's right, Akiko. The toy maker right now seeing some gains despite a miss on the bottom line. We'll show you the results for the company's latest quarter where its revenue came in line with expectations a little bit above expectations. Meanwhile, its earnings per share on an adjusted basis came in below what the Street was expecting. Now part of this has to do with freight costs, higher freight costs, which was affecting its bottom line, and also inventory costs. In fact, Hasbro has said that in the second quarter, it is increasing prices. It's raising prices to offset those higher costs in the future.
Now, keep in mind that this company is under some activist investor pressure to spin out with its Wizards unit. That's a unit that houses "Dungeons & Dragons," and also to add some board members to the company's board. The stock right now trading at around $86 a share, but the activist investor feels like this stock could be at $200 a share if their changes were to be implemented, guys.
BRIAN CHEUNG: Yeah, apparently, that "Dungeons & Dragons" unit up 9%. So people are still playing that. Ines, though, I want to watch another stock. WeWork apparently up almost 10%. What's going on there?
INES FERRE: Yeah, that's right. WeWork, and we'll show you on our YFi Interactive board, we're seeing the stock up, and I'm going to show you on the SPAC chart what we've been seeing with WeWork here. And you can see it, yeah, up here, 9%. Piper Sandler initiating its coverage of WeWork with an overweight rating. In fact, this is the only analyst that has initiated coverage of WeWork so far because there is one buy rating and zero holds, zero sells.
And basically, the analyst at Piper Sandler saying that the company's path to profitability expected that profitability to come in late 2023, late 2024. That investors are under appreciating the company's flex work business model, saying that that business model really does well in the post-COVID world. Now, keep in mind that he's got a price target of $10 a share. And also one other note, talking about desk utilization rates, up to 63% right now. That is off of the lows, the COVID lows of 43% for those desk utilizations.
BRIAN CHEUNG: Got it. Well, have you guys seen that-- the show yet? What's the WeWork show again?
AKIKO FUJITA: No, I have not.
BRIAN CHEUNG: What's it called? I got to check it out.
AKIKO FUJITA: I'm confusing it-- "Super Pumped" is the Uber show.
BRIAN CHEUNG: "Super Pumped" is the Uber one. See, there's plenty.
AKIKO FUJITA: WeWork is the one with Jared--
BRIAN CHEUNG: There's way too many.
AKIKO FUJITA: The documentary was really good.
INES FERRE: The documentary you were mentioning, yeah, I have not seen that.
BRIAN CHEUNG: And then there's a book. There's a whole cinematic universe. Yeah.
INES FERRE: There's a lot behind WeWork, yes.
AKIKO FUJITA: I feel like--
INES FERRE: A lot of stories to tell.
AKIKO FUJITA: [INAUDIBLE] WeWork.
BRIAN CHEUNG: Yeah.
