Here’s What Affected Mattel’s (MAT) Performance in Q3

Ariel Investments, an investment management company, released its “Ariel Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S equities rallied in the third quarter, driven by the Federal Reserve’s first rate cut of the year, strong corporate earnings, and broadening market participation. The continued enthusiasm for AI led to outsized gains in technology, while small caps outperformed as capital shifted into undervalued segments of the market. Against this backdrop, Ariel Fund returned +12.39% in the quarter, surpassing the Russell 2500 Value Index’s +8.17% return and lagging behind the Russell 2000 Value Index’s +12.60% gain. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Ariel Fund highlighted stocks such as Mattel, Inc. (NASDAQ:MAT). Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company. The one-month return of Mattel, Inc. (NASDAQ:MAT) was 13.49%, and its shares gained 0.95% of their value over the last 52 weeks. On October 23, 2025, Mattel, Inc. (NASDAQ:MAT) stock closed at $19.18 per share, with a market capitalization of $6.18 billion.

Ariel Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its third quarter 2025 investor letter:

“By comparison, toy manufacturer Mattel, Inc. (NASDAQ:MAT) traded lower on mixed earnings, which were impacted by timing shifts in retailer order patterns due to tariff uncertainty while consumer demand remained healthy. Despite macro headwinds, gross margins expanded and EPS topped consensus, reflecting continued progress on profitability initiatives. While 2025 guidance was set slightly below initial expectations, management still expects revenue growth and market share gains. With resilient point of sale, disciplined cost control and active buybacks, we believe the quarter highlights operational momentum. Mattel’s ability to monetize its IP through future media projects supports our view that shares remain undervalued.”

Jim Cramer On Mattel (MAT) – Go To Grok, Hasbro’s Ahead

Mattel, Inc. (NASDAQ:MAT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Mattel, Inc. (NASDAQ:MAT) at the end of the second quarter, up from 29 in the previous quarter. In the third quarter of fiscal 2025, Mattel, Inc.’s (NASDAQ:MAT) net sales decreased 6% as reported and 7% in constant currency to $1.74 billion. While we acknowledge the risk and potential of Mattel, Inc. (NASDAQ:MAT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Mattel, Inc. (NASDAQ:MAT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Mattel, Inc. (NASDAQ:MAT) and shared the list of top NASDAQ stocks with low P/E ratios. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.