Connie Maneaty 2.6 3 ideas

When asked about pricing power, Connie notes that "quite a bit of pricing did come through" and expects "higher for longer prices on these toys." Despite fears of consumer weakness, toy companies have successfully managed price elasticity. Sticky pricing protects margins even if volume growth is modest. LONG Toy manufacturers on pricing power resilience. Consumer spending cliff or tariff impacts on production costs.

Jefferies raised its price target. Connie notes Walmart is gaining market share with households earning over $100k and is monetizing data/ads like a tech company. Walmart is no longer just a retailer; it is evolving into a data/advertising platform (high margin) while using scale to keep prices low (gaining share). This justifies a higher multiple than historical norms. LONG WMT as a defensive growth compounder. Valuation is already stretched relative to historical retail multiples.