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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at toys and electronics stocks, starting with Funko .
The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks.
The 4 toys and electronics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
Boasting partnerships with media franchises like Marvel and One Piece, Funko is a company specializing in creating and distributing licensed pop culture collectibles.
Funko reported revenues of $250.9 million, down 14.3% year on year. This print fell short of analysts’ expectations by 4.2%, but it was still a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"We delivered a solid 2025 third quarter performance, with net sales in line with internal expectations and gross margin and bottom-line profitability well ahead of expectations,” said Josh Simon, Chief Executive Officer of Funko.
Interestingly, the stock is up 4.5% since reporting and currently trades at $3.16.
Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free for active Edge members.
Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.
Hasbro reported revenues of $1.39 billion, up 8.3% year on year, outperforming analysts’ expectations by 3.2%. The business had a strong quarter with a decent beat of analysts’ Wizards & Digital Gaming revenue estimates and a decent beat of analysts’ revenue estimates.
Hasbro scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.6% since reporting. It currently trades at $81.63.
Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free for active Edge members.
Making a name for itself with the BarkBox, Bark specializes in subscription-based, personalized pet products.
Bark reported revenues of $107 million, down 15.2% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Bark delivered the slowest revenue growth in the group. As expected, the stock is down 16.6% since the results and currently trades at $0.67.
Read our full analysis of Bark’s results here.
Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel is a global children's entertainment company specializing in the design and production of consumer products.
Mattel reported revenues of $1.74 billion, down 5.9% year on year. This result missed analysts’ expectations by 5.5%. It was a softer quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Mattel had the weakest performance against analyst estimates among its peers. The stock is up 8.3% since reporting and currently trades at $20.39.
Read our full, actionable report on Mattel here, it’s free for active Edge members.
By James R. Hagerty
What does it take to keep kids amused? Before the invention of electronic games and smartphones, that was a more complicated question for parents. Burt Meyer provided many of the answers.
Meyer, who died Oct. 30 at the age of 99, played a large role in the design of toys that entranced baby boomers and still have fans today, including Rock 'Em Sock 'Em Robots, Lite-Brite, Toss Across and Mouse Trap. Randy Klimpert, who worked for Meyer, recalls him as the most successful partner at Chicago-based Marvin Glass & Associates, the most prominent toy-design firm of the boomers' childhood era.
The idea that became Rock 'Em Sock 'Em Robots was nearly knocked out before it could reach store shelves. In the early 1960s, Meyer and his boss, Marvin Glass, who founded the Chicago toy-design firm, visited an arcade to seek inspiration. They noticed a game that involved action figures duking it out. Meyer began doodling designs for a boxing game that could be played at home.
Then, in March 1963, Davey Moore died after a televised prize fight with Sugar Ramos. Pope John XXIII denounced boxing as barbaric. Bob Dylan wrote a protest song about Moore's death. Meyer and Glass concluded it was the wrong time to release a boxing toy.
Meyer soon came up with another idea: Why not let robots (or what passed for robots in the 1960s) do the bashing? He devised a game involving two plastic robots, controlled by levers. The winner would be whichever player managed to knock the head off the other player's robot.
By late 1964, Kmart stores were advertising Rock 'Em Sock 'Em Robots for $7.97. The game, now produced by Mattel, is still on the market.
In an autobiographical summary of his career, Meyer said his favorite toy design was Lite-Brite, which allows people to create colorful designs by plugging plastic pegs into a grid. He recalled being inspired by blinking lights in a Manhattan window display.
The object of Mouse Trap, a board game featuring a Rube Goldberg-style contraption, is to catch plastic mice. Toss Across blends elements of cornhole and tic-tac-toe.
The joys of fake vomit
Marvin Glass, whose firm's origins date to the early 1940s, pioneered the idea of forming independent design studios to invent toys that could be licensed to toy manufacturers. Early designs included fake vomit and a plastic robot called Mr. Machine, a windup robot that was transparent, allowing children to see how the gears worked. The firm was so successful that toy manufacturers routinely traveled to Chicago to see its latest prototypes.
When Meyer joined the firm in 1959, the offices and design studios were inside a seedy Chicago hotel, the Alexandria, where 20 or so designers and technicians worked in white lab coats. The firm moved in the mid-1960s to a boxy two-story building with security cameras and windowless rooms, to deter rivals from snooping on toy designs. The interior was oddly decorated with chandeliers and sculptures of nude women, according to "Timeless Toys," a 2005 history by Tim Walsh. A Chinese chef prepared lunches for the staff and guests.
Glass did well enough to furnish a luxurious home featured in Playboy magazine in 1970 under the heading: "A Playboy Pad: Swinging in Suburbia." His art collection included works by Dali, Chagall and Picasso.
After Glass died in 1974, Meyer and the other partners carried on with the business. By the mid-1980s, Meyer was wealthy enough to retire, at age 59, to pursue his hobbies, which included flying airplanes and gliders.
The remaining partners dissolved Marvin Glass in 1988. Many of the employees found jobs at spinoff firms but others faced unemployment. Meyer recruited some of those employees for a new company, Meyer/Glass Design, in which Abelia Glass, the widow of Marvin Glass, was a financial partner.
One of Meyer's sons, Steve, joined Meyer/Glass and eventually succeeded his father as head of the firm, whose hit products included Silly 6 Pins, a bowling game, and Gooey Louie, which involves picking the nose of a plastic character. Introduced in 1995, Gooey Louie was advertised as "grosser than gross."
Klimpert, who was a partner at Meyer/Glass, said working in a toy-design studio wasn't fun and games. The pressure to find new hits was intense, and most ideas went nowhere.
Early in his career, Klimpert recalled, he was asked to come up with a game involving plastic cars. He kept presenting ideas; Meyer kept rejecting them. Finally, in exasperation, Klimpert asked Meyer to spell out what he wanted. Meyer replied that if he knew what he wanted he wouldn't have hired Klimpert.
Taking flight
Burton Carpenter Meyer was born April 18, 1926, in Hinsdale, Ill. His father, John F. Meyer, was a pharmacist. His mother, Esther (Carpenter) Meyer, managed the home. As a boy, he enjoyed building model airplanes. In 1944, he enlisted in the Navy and served for two years as an aircraft mechanic.
After earning a degree in product design at the Institute of Design in Chicago, he taught at the Art Institute of Atlanta, then returned to Chicago, where he worked as a designer of jukeboxes and displays for trade shows. He applied at Marvin Glass in 1959 after a colleague spotted a help-wanted sign there.
Meyer's survivors include three children, six grandchildren and six great-grandchildren. His wife, Marcia (Kass) Meyer, died in 2001.
He had a TOY KING license plate on his Lexus ES 350. When he wasn't designing toys, Meyer spent much of his time flying airplanes, including various Cessna models. In 1971, he moved his family to the Chicago suburb of Downers Grove, where his home was adjacent to a runway and he had a hangar to store his planes. He also flew gliders, sometimes in time trials, and competed in cross-country skiing races.
At age 59, he rode a bicycle from California to South Carolina. But his taste for adventure was far from sated. A decade later, at 69, he joined a two-week expedition to the North Pole, traveling by airplane, skis and dog sleds.
Around camp fires on his adventure trips, he played a harmonica. On a kayaking trip in Belize, a tour leader discovered that she couldn't light her portable cooking stove. She consulted Meyer, who was known for creative problem-solving. He showed her how to use one of her shoelaces to fashion a wick. The dinner plans were saved.
Write to James R. Hagerty at reports@wsj.com
What Happened?
A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.
The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
Zooming In On Opendoor (OPEN)
Opendoor’s shares are extremely volatile and have had 103 moves greater than 5% over the last year. But moves this big are rare even for Opendoor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 12.5% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Opendoor is up 389% since the beginning of the year, but at $7.77 per share, it is still trading 26.1% below its 52-week high of $10.52 from September 2025. Investors who bought $1,000 worth of Opendoor’s shares 5 years ago would now be looking at an investment worth $414.40.
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