Daily Newsletter | November 16, 2023

November 16, 2023

TLDR

MARKET RECAP → Stocks closed with a whimper on Thursday as investors took a pause from the recent rally.

MATTEL’S BIG MOVE → Mattel (MAT) hires ex-Fox and Sony exec Michelle Mendelovitz to lead its TV studio, aiming to transform iconic toys like Barbie and Hot Wheels into screen stars and replicate “Barbie’s” blockbuster success. ?

CISCO’S TOUGH DAY → Cisco’s (CSCO) stock tumbled 10% after a gloomy revenue forecast, marking its worst day since May 2022, despite beating quarterly earnings – a classic case of “winning the battle but losing the war” in the stock market. ?

Sean Horgan

Head of Investor Relations @ MoneyLion

$shorgan

Today’s S&P 500 Heatmap

Source: finviz.com

Today’s Top News

MATTEL’S BIG MOVE

? Mattel (MAT), riding high on the success of “Barbie,” has appointed former Fox and Sony executive Michelle Mendelovitz to head Mattel Television Studios. This strategic hire aims to expand the company’s content offerings, leveraging its iconic toy brands.

? Mendelovitz, with a rich background at Disney 20th Television Studios, Apple TV+, Sony Pictures Television, and CBS Television Network, is set to elevate Mattel’s storytelling and connect global audiences with its beloved franchises.

? The toy giant is doubling down on its strategy to capitalize on its intellectual property beyond toys. Upcoming projects include “Hot Wheels Let’s Race” and “Masters of the Universe: Revolution.” Additionally, Mattel plans to reintroduce Barney with new content and a corresponding toy line, aiming to replicate the success of “Barbie.”

Source: shutterstock

CISCO’S TOUGH DAY

? Cisco’s (CSCO) shares plummeted by more than 10% on Thursday, marking their worst performance since May 19, 2022, when the stock fell 13.7%. This decline followed the company’s quarterly earnings report, which, despite beating top and bottom line estimates, offered weaker-than-expected revenue guidance for the fiscal second quarter and a reduced full-year revenue forecast.

? The company attributed the downturn to a slowdown in orders, as customers were still deploying previously purchased Cisco products. CEO Chuck Robbins highlighted a shift in the supply chain bottleneck, now impacting customer and partner implementation.

? Despite posting adjusted earnings per share of $1.11, surpassing the $1.03 estimate, and reporting $14.67 billion in revenue for the quarter, Cisco’s forecast for the fiscal second quarter was lower than expected. The company projected 82 to 84 cents in adjusted earnings per share on $12.6 billion to $12.8 billion in revenue, indicating a 6.6% revenue decline. Analysts had anticipated 99 cents in adjusted earnings per share on $14.19 billion.