- eToro analysed 10 movies which either focus on one brand or feature a brand prominently
- On average, brands saw 8% share price lift in three-month lead up to the movie’s release
- But the brands then saw average of 4.3% fall in share price in three months after launch
It’s one of the most hotly anticipated movies of the decade, and with excitement building ahead of this week’s release, Barbie producer Mattel has already been reaping the rewards of the buzz.
The company’s share price is up 22% in the past three months, following a shaky start to the year, begging the question – just how high can the stock go in the coming weeks?
According to analysis by the trading and investment platform eToro, while brand-focused films tend to create significant share price momentum in the three-month build-up to a movie’s release, enthusiasm tends to dampen in the three months that follow.
This is illustrated by several recent examples where movies have either focused entirely on one brand’s story or where brands have received prominent product placement in blockbuster films.
In the build up to the 2021 film House of Gucci, the fashion label’s owner Kering saw a 6% increase in its stock price in the three-month lead up, but in the three months after, it fell 13%. In the lead up to the 2013 film Steve Jobs, Apple enjoyed an 18% share price lift, but in the following months, the stock price moved up by just 3%.
In the 10 examples analysed by eToro in the table below, the respective companies on average saw a 8% share price increase in the build up to the release of the movie in which they were featured prominently or focused on entirely. In the three months after release, the same companies on average saw a 4.3% fall in share price.
Commenting on the data, eToro Global Markets Strategist, Ben Laidler, said: “The much-anticipated Barbie movie showcases two of the hottest topics in the global media industry: the growth of blockbuster movie franchises and huge product placement revenues.
“Barbie has become one of the largest entertainment franchises out there since its launch in 1956, alongside Star Wars, Disney Princess, Marvel, and Harry Potter, with spin-offs from merchandise sales to TV shows. The worldwide product placement industry is valued at over $25 billion annually and growing at a double-digit pace, with brands increasingly willing to pay-up for this type of mass-media exposure.”
| Film & Release date | Related company | Share price performance 3 months before | Share price performance 3 months after |
| Air
(05/05/23) |
Nike | -1% | -14% |
| Top Gun: Maverick (27/05/22) | Northrop Grumman | 15% | 3% |
| House of Gucci (24/11/21) | Kering | 6% | -13% |
| No time to die (30/09/21) | Aston Martin | 2% | -32% |
| Ford vs Ferrari (15/11/19) | Ford | 3% | -11% |
| Ford vs Ferrari (15/11/19) | Ferrari | 8% | 6% |
| The Founder
(20/01/17) |
McDonalds | 11% | 9% |
| Steve Jobs
(23/10/16) |
Apple | 18% | 3% |
| Saving Mr. Banks (13/12/13) | Disney | 4% | 15% |
| Iron Man
(02/05/08) |
Audi (VW) | 14% | -8% |
| Average | 8.0% | -4.3% |
*Numbers in table rounded to nearest whole number, with exception of averages
One of the most notable examples was Audi (owned by Volkswagen), which saw a 14% share price jump in the build up to 2008’s Iron Man, a film which featured the car brand prominently. Following the movie’s launch, the share price fell away by 8%. Meanwhile an exception to the rule came with Walt Disney biopic Saving Mr Banks, with Disney’s share price accelerating further after the release of the movie, jumping 15% in the following three months.
Laidler adds: “Movie-goer anticipation and studios’ big marketing dollars have a clear positive spill-over to the share prices of the companies most associated with these movies, with nine of the ten stocks analysed rising ahead of the movie premiere by an average of 8%. But this share price boost seems to be temporary as five of the ten saw their prices fall, down an average of 4.3%, with a post-premiere hangover.”
ENDS
Notes to editors
The data used in this press release was taken from Refinitiv on 18.07.2023
Media contact
PR@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have over 32 million registered users from more than 100 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
Disclaimers:
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
eToro is authorised and regulated by the Financial Conduct Authority in the UK, in Cyprus by the Cyprus Securities and Exchange Commission, by the Australian Securities and Investments Commission in Australia and licensed by the Financial Services Authority in the Seychelles.
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication.
Regulation and License numbers
UK
eToro (UK) Ltd, is authorised and regulated by the Financial Conduct Authority (“FCA”). Firm Reference Number: 583263. Registered in England under Company No. 07973792
Europe
eToro (Europe) Ltd, is authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under licence number 109/10. Registered in Cyprus under Company No. HE 200585.
Australia
eToro AUS Capital Limited(“eToro Australia”) is regulated by the Australian Securities & Investments Commission (“ASIC”) for the provision of financial services and products. Australian Financial Services Licence number: 491139.