Mattel, a company that owns Barbie brand, currently experiences bad times and suffers losses. However, this may be irrelevant for tactical traders, esp. those who rely exclusively on technical analysis. But now they shall be strongly disappointed too: MAT stock has drawn a pattern, which can be named doubleF*ck.
Operative losses and falling sales is what Mattel currently confronts with. However, Barbie was once a queen of dolls and a queen cannot be dethroned so easily. That's why we kept (and continue keeping) an eye on the Mattel's stock. And after a spectacular market reaction on earnings report (published on Apr 25 AMC) we conclude that we shall not hurry to buy this stock.
On 26 Apr the stock opened with a jump, which first seemed to be a good sign. However, it rapidly went down and ended up below the previews day. Thus we expect that Mattel will continue a downtrend. Interestingly, the scandal with baby fatalities in Fisher-Price cradles seems to fade out without causing a huge reputational damage for Mattel. But the pattern, drawn on the daily chart, definitely resembles the middle finger(s) and thus may cause it!
Additionally, I can boast that Elle - my 8 year wealth management apprentice - really makes progress. Since she likes playing dolls, I asked her whether, in her opinion, a company that produces Barbies shall do well or not.
And she answered: definitely not since neither me, myself, nor my friends love Barbie. Moreover, when I was in a toy shop I have never seen that anyone purchases Barbies, the shelves are full of them but nobody really buys.
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