Why Hasbro (HAS) Shares Are Trading Lower Today

What Happened?

Shares of toy and entertainment company Hasbro (NASDAQ:HAS) fell 3.4% in the morning session after its second-quarter earnings report revealed a significant decline in its Consumer Products division. 

Although the toymaker surpassed Wall Street's expectations for both overall revenue and profit, investors focused on the underlying weakness in key segments. The company's Consumer Products division, which includes traditional toys, saw its revenue fall by 16%. Similarly, the Entertainment segment's revenue dropped by 15%. This poor performance in its core businesses overshadowed a 16% revenue surge in its successful Wizards of the Coast and Digital Gaming unit, which is driven by the popular "Magic: The Gathering" game. Furthermore, Hasbro recorded a substantial $1.0 billion non-cash goodwill impairment charge, which resulted in a large reported operating loss.

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What Is The Market Telling Us

Hasbro’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 22 days ago when the stock gained 5.8% on the news that the company received an upgrade from Goldman Sachs, which cited benefits from its popular "Magic: The Gathering" card game. Goldman Sachs upgraded Hasbro's stock to "Buy" from "Neutral," and set a price target of $85, suggesting a potential 15% upside from its recent price. This optimistic view was supported by a broader positive sentiment from Wall Street, with a consensus "Buy" rating from analysts.

Hasbro is up 36.2% since the beginning of the year, and at $76.87 per share, it is trading close to its 52-week high of $78.22 from July 2025. Investors who bought $1,000 worth of Hasbro’s shares 5 years ago would now be looking at an investment worth $963.31.

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