Why Mattel (MAT) Stock Continues To Drop Today

NEW YORK (TheStreet) -- Shares of Mattel Inc. (MAT) are lower by 1.17% to $31.30 in mid-afternoon trading on Thursday, as the stock continues to fall following yesterday's announcement Mattel will lose the rights to develop Disney (DIS) Princess and Frozen themed dolls to Hasbro (HAS) in 2016.

The "Barbie Doll" maker will continue to sell dolls based on the Disney Princesses and Frozen characters through the end of 2015.

Dolls representing characters from the smash hit Disney film Frozen helped Mattel overcome struggling "Barbie Doll" sales, which declined by 15%, during the 2014 second quarter, the Associated Press reported.

Watch the video below for more on the toy war between Mattel and Hasbro:

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"We're talking about hundreds of millions of dollars of revenue in Disney Princess going away starting in 2016," an analyst from Needham & Co. said to Bloomberg.

Separately, TheStreet Ratings team rates MATTEL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MATTEL INC (MAT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: MAT Ratings Report

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