NEW YORK (TheStreet) -- Two giant toy companies reported earnings, and both disappointed, leaving TheStreet's Jim Cramer to believe that a structural change is underway. He tells "Mad Money" Research Director Nicole Urken what he believes is behind the shift.
missed on both top- and bottom-line estimates last Wednesday and now
did the same on Monday.
In the past, both said that they preferred Mattel to Hasbro, because the company depends less on hot movie franchises to move sales.
But with both companies missing badly on estimates, Cramer sees a different, fundamental change underway: Tablets.
Parents, specifically young ones, are tech-savvy and are now putting tablets in their children's hands, rather than dolls, action figures or board games.
The tablet has been the toy substitute, he said, that can be tailored to young children and even infants, as a way to both play
learn. The move is relatively easy to spot, since both companies failed to impress investors.
Cramer concluded that he still prefers Mattel to Hasbro, but that he likes the tablet more than either, citing this as a play on
. Still, he did not advocate buying the stock on this basis alone.
-- Written by Bret Kenwell in Petoskey, Mich.
Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.