Bank of America has doubled down on a potential Hasbro stock crash as consumer confidence continues to drop amid very big concerns for both Magic the Gathering and D&D.
It wasn’t that long ago when Bank of America did a deep dive into Hasbro, and more specifically, Magic, and didn’t like what they found. However, with everything in the report and the consumer outcry to things like OGL, the anniversary proxies, and release fatigue, we thought Hasbro would listen. Well, according to BofA, they haven’t made any changes.
So, if you haven’t heard, In a pre-market report from 2022, Bank of America changed their rating of Hasbro stock from Buy to a double downgrade of Underperforming, a move that caused ripples in the market. However, things don’t seem to be looking up…
Bank of America Doubles Down on Hasbro Stock Being Bad
Well, let’s start with the most telling quote from Bank of America:
The company faces a steep decline in its share price if it continues to destroy customer goodwill. Within its Wizards segment, Hasbro continues to destroy customer goodwill by trying to over-monetize its brands.
Not only did BoA also say Hasbro is over-monetizing Magic and D&D, but they also moved down their projected stock once again.
“We remain especially cautious on Hasbro’s Wizards segment given its over-monetization of Magic. Wizards recently tried a similar tactic with D&D-proposing changes to its licensing agreement which led to substantial pushback from the community including calls to boycott the D&D movie,” BoA explained.
Now, BofA has Hasbro at $42, which is another 29% downgrade. It really feels like BofA has a good grasp on what’s happening with the company and how the community continues to push back against the constant issues.
As we’ve said before, it doesn’t really feel like Hasbro is trying to expand the player base, they are really just trying to get every last dollar out of the existing player base, and people are starting to get fed up.
We’ve talked a lot about the reserve list, $1,000 proxies, and more, but maybe the most telling thing recently is the community actually prompted Hasbro to stop the OGL licensing. Obviously, this wasn’t missed by BoA either.
Wizards recently tried a similar tactic with D&D-proposing changes to its licensing agreement which led to substantial pushback from the community including calls to boycott the D&D movie.
Not only did they boycott, but people also stopped their DDB subscriptions, and there was a petition with over 70,000 signatures against the move. While this temporarily stopped the move, you should be cautious, as they only did this to stop the bottom from falling out.
We don’t think this will be the end of it all, and BoA feels the same. However, existing players are starting to get tired of the constant releases, what’s happening on the business side, and a weak fan engagement doesn’t bode well.
We’ll have to see if Hasbro listens to Bank of America this time, or if they continue down the same path.
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What are your thoughts on Hasbro continuing down the same path? Are you getting tired of the constant releases and money grabs?
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About the Author: Rob Baer
