Why Mattel Inc. (MAT) Went Up on Wednesday

We recently compiled a list of the 10 Companies Jump on Better Earnings, Outlook. In this article, we are going to take a look at where Mattel Inc. (NASDAQ:MAT) stands against the other stocks.

The stock market extended its winning streak on Wednesday, closing firmer as investors seemed to have already priced in the news of tit-for-tat tariffs and uncertainties surrounding the Artificial Intelligence industry.

The Dow Jones gained another 0.71 percent, the S&P 500 grew 0.39 percent, and the tech-heavy Nasdaq increased by 0.19 percent.

Ten companies traded in line with the broader market sentiment, mostly on the back of record achievements in their latest earnings performance and optimistic outlook guidance.

To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A child with a wide smile playing with the latest interactive toy.

Mattel Inc. (NASDAQ:MAT)

Shares of Mattel Inc. jumped by 15.33 percent on Wednesday to end at $20.84 each as investors cheered news of a 153-percent surge in net income for the full year 2024.

In a statement on Wednesday, Mattel said net income last year settled at $542 million, marking a significant jump from the $214 million reported in 2023. Net sales, however, dipped by 1 percent to $5.38 billion from $5.44 billion year-on-year.

In the fourth quarter alone, net income dropped by 4 percent to $140.9 million from $147.3 million year-on-year, while net sales inched up by 2 percent to $1.65 billion from $1.62 billion.

For this year, Mattel said it was targeting to achieve growth in both topline and bottomline.

“Mattel’s 2025 guidance includes our expectation to grow top and bottom line, increase investments in digital games, and repurchase $600 million of shares. We are well positioned to continue to create long-term shareholder value,” said Mattel Chairman and CEO Ynon Kreiz.

Overall MAT ranks 2nd on our list of Wednesday’s top gainers. While we acknowledge the potential of MAT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.