A Look at Mattel's (MAT) Valuation Following Its AI Collaboration With OpenAI

Mattel (MAT) just announced a collaboration with OpenAI to bring Sora 2, the next-generation AI video model, into its product development process. This partnership represents a deliberate step toward integrating artificial intelligence into Mattel’s core business.

See our latest analysis for Mattel.

Mattel’s collaboration with OpenAI arrives during a period of notable, if volatile, price activity. After a roughly flat 30-day share price return, momentum picked up recently with the stock gaining 2.3% over the last day and 6.5% in the past week. Over the year, though, the total shareholder return still sits at -4.4%, showing that short-term enthusiasm is yet to translate into sustained long-term gains. Meanwhile, recent product launches with MoMA and new ventures under the Barbie brand have kept Mattel firmly in the spotlight. This suggests that investors are watching closely as the company bets on innovation and digital transformation.

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But after such rapid shifts and investor buzz, is Mattel’s current share price still trailing its true value? Or has the market already factored in all of the company’s potential gains from this bold AI push?

Most Popular Narrative: 25.9% Undervalued

Mattel’s most closely watched narrative sets a considerably higher fair value than its recent closing price. This narrative points to ongoing reinvention and surprising strength beyond short-term results.

Ongoing investment in digital integration, such as the OpenAI collaboration and self-published games in 2026, as well as an expanded Netflix partnership, positions Mattel to leverage the growing convergence of physical and digital play experiences. This is expected to support future revenue growth and margin expansion.

Read the complete narrative.

What makes this price target truly bold? The entire projection depends on future profit margins and ambitious international sales goals. Ready to uncover the growth and profitability bets powering this forecast? Only the full narrative reveals the numbers behind this striking undervaluation.

Result: Fair Value of $24.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Mattel’s dependence on just a few legacy brands and its exposure to rising costs could quickly dampen this upbeat outlook if trends turn adverse.

Find out about the key risks to this Mattel narrative.

Build Your Own Mattel Narrative

If you have your own take on where Mattel is headed, or want to see the numbers first-hand, you can shape your own forecast in minutes. Do it your way

A great starting point for your Mattel research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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