Disney and Hasbro Prove Toys and Games Aren't Dead
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The major indices on Wall Street were rather flat today. The Dow Jones Industrial Average ended the session down 0.05%, while the S&P 500 closed up 0.01% and the Nasdaq ended up 0.15%. The session had very few macro events to push stocks in either direction, which is a welcome break from what we've dealt with over the past few months. But it may not last long, as a number of government-funded economic data reports are set to hit this week. And with the jobs numbers coming out tomorrow, things could get a little rocky.
A few winners
Shares of Disney moved higher by 0.69% today, possibly related to the announcement that video game Disney Infinite has now sold more than 1 million units. The product is off to a great start, with two full months of holiday shopping ahead of us. Last month, Disney reported that it had sold 294,000 Infinite units during the last two weeks of August, and it's on pace to sell just under 250,000 units every two weeks.
Disney has done a great job of building its various units to work together. More games in kids' hands mean movie franchises become more popular, theme-park visits become more sought after, and more merchandise gets bought. Disney is clearly an excellent company and looks to continue operating at a high level for some time to come.
Speaking of toys, shares of Hasbro had a great day as well, as shares rose 5.25% after the company reported a great third quarter. The company beat Wall Street expectations on both the top and bottom lines and showed a nice 2% increase in sales. What's most shocking is that the company is proving it can continue to grow revenue by selling old-school physical toys and games in an age dominated by electronic devices.
Considering what both Disney and Hasbro are doing, it appears the gaming industry is having a good year. Investors could expect things to get even better as we head into the holiday season.
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The article Disney and Hasbro Prove Toys and Games Aren't Dead originally appeared on Fool.com.Fool contributor Matt Thalman owns shares of Walt Disney. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513. The Motley Fool recommends and owns shares of Hasbro and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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