In This Article:
What Happened?
Shares of toy and entertainment company Hasbro (NASDAQ:HAS) jumped 16.1% in the afternoon session after the company reported strong first quarter 2025 results which significantly exceeded analysts' expectations across revenue, EPS, and EBITDA. The real spark came from digital games. Zooming out, we think this quarter featured some important positives.
The shares closed the day at $60.37, up 14.7% from previous close.
Is now the time to buy Hasbro? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Hasbro’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Hasbro and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 13.4% on the news that the company reported impressive fourth-quarter 2024 results, which blew past analysts' sales, operating profits, and earnings estimates. Margins improved significantly and this helped push full-year adjusted EBITDA ahead of expectations, reinforcing the company's ability to drive profitability despite a slight revenue decline. Zooming out, this was a solid quarter.
Hasbro is up 7.1% since the beginning of the year, but at $60.44 per share, it is still trading 17.1% below its 52-week high of $72.94 from October 2024. Investors who bought $1,000 worth of Hasbro’s shares 5 years ago would now be looking at an investment worth $807.27.
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.