Is Lego a Publicly Traded Stock?

Lego is lego! It’s as self-explanatory as it gets. Lego is one of the most popular toy brands in the world. They’re headquartered out of Billund, Denmark. The brand was established way back in 1949 and first started as a wooden toy made by a Danish carpenter. The name Lego is derived from the Danish words ‘leg godt’, which loosely translates to ‘plays well’. It wasn’t until the 1950s when Lego started to mass-produce its toys with the familiar fitted bricks we all know. Amazingly, if you had Lego bricks from the 1950s, they would still fit perfectly with new bricks made today. But can you trade Lego stock?

Can I Buy Lego Stock? 

Unfortunately not, even if you live in Denmark. Lego has been a privately run company ever since it was first established. I can see why you would be interested in buying Lego stock though. It is an industry leader and has as recognizable a brand presence as there is in any market. 

Lego stock would definitely be a popular stock that parents can purchase for their children. Some other examples of these portfolio starters include stocks like Walt Disney (NYSE: DIS), Roblox (NYSE: RBLX), and McDonald’s (NYSE: MCD).

Even though it is a powerful company and a top tier global brand, Lego is not currently publicly traded on any stock market in the world. 

As a business, Lego is still exhibiting strong growth. For the year 2020, the company reported a 13% year over year rise in revenues to roughly 43.7 billion DKK or just under $7 billion USD. This puts Lego firmly in the area of $2 billion in revenues per quarter.

Obviously, the holiday quarters will provide larger returns than other quarters. The jump in revenues was due to more people staying in due to the COVID-19 pandemic, as well as expansion of global supply chains and a stronger reliance and availability on eCommerce platforms. 

Are There Any Stocks Like Lego?

You can’t trade Lego stock. So are you looking for ways to invest in stocks that are similar to Lego? The global toy market is estimated to be worth nearly $100 billion and growing. These days, it’s not just children that are playing with these toys either! As you probably already know, many Lego models are quite complicated and expensive, and there is a growing number of hobbyists who collect these sets for fun. Let’s take a look at other stocks you can buy to invest in the toy and games industry!

Roblox (NYSE: RBLX): Can we call this the 21st-century digital version of Lego? Roblox is a game that is completely unique. Players can fully customize their worlds and have their friends and other users interact with them. It’s similar to other world-building games like Minecraft. And it’s extremely popular amongst the younger, pre-teen demographics. Roblox reported over 43 million daily active users as of Q2 in 2021. And while the stock has mostly traded sideways since its IPO earlier this year, the game shows continued growth even after the worst of the pandemic.

Toy Companies

Walt Disney (NYSE: DIS): Perhaps the only brand of children’s toys that can compete with Lego, Disney quite literally has something for everyone. The multimedia conglomerate has become a juggernaut at the box office. As well as with its streaming platform Disney+.

But one of the most overlooked segments of Disney’s revenue machine is its intellectual property merchandise. Toys of popular series like Star Wars and the Marvel Universe are extremely popular. As are other franchises like Toy Story, Frozen, and The Lion King.

It’s difficult to quantify sales numbers for Disney when its parks and resorts were closed. But the licensing and sales products segment accounts for 10% of Disney’s revenues. 

Hasbro (NASDAQ: HAS): Hasbro isn’t a company you would normally think of as a stock to buy. However, shares have returned over 25% during the past year.

The 98-year old company makes toys and games that include popular franchises like Transformers, G.I. Joe, Power Rangers, Nerf, and My Little Pony. It also owns the brands for Parker Brothers and Milton Bradley.

These are two of the largest producers of board games. While Hasbro has lagged the S&P 500, the stock has performed admirably against difficult competition from video games and mobile phones.

Mattel (NASDAQ: MAT): One of Hasbro’s largest competitors, Mattel owns lucrative brands like Barbie, Fisher-Price, American Girl, and Thomas the Tank Engine. Mattel’s stock has actually outperformed Hasbro during the past year. Shares have gained over 83.0% during that time. Still, Mattel faces the same issues that Hasbro does in an increasingly digital world. But you can trade them since there’s no Lego stock.

The Best Lego Product Partnerships

One of the best parts about choosing which Lego set to build is the sheer number of different brands it is partnered with. With no Lego stock, here’s a quick list of some of the best partnerships for Lego products.

Marvel Universe and DC Universe: When it comes to the two largest comic book universes, Lego doesn’t mess around. It partners with both. Lego has dozens of different sets built around these superheroes.

But perhaps one of the most popular pieces of intellectual property for Lego lies in its movies and television shows. Lego has several movies out including the Lego Batman Movie. As well as Lego Avengers, Lego Justice League vs. Bizarro League, and Lego Aquaman. 

Lego Star Wars: One of the most popular franchises in the world, Star Wars has its fair share of Lego products. This includes multiple different series and movies based in the Lego Star Wars universe.

And even a few video games as well. Some of the most complex and intricate Lego sets are the Star Wars models, including the infamous Lego Death Star which consists of over 4,000 pieces and will cost you over $1,000.00 to buy. 

Adidas Originals: Lego isn’t just about superheroes as it knows a thing or two about fashion as well. Lego partnered with Adidas Originals to create several pieces of clothing that incorporate Lego designs, as well as a Lego set for the famous Adidas Superstar sneaker. 

Partnerships Continued

Ninjago: The Ninjago franchise launched back in 2011 and has rapidly grown in popularity to become a flagship brand. Ninjago is loosely based on the Ancient Japanese Ninja clans and currently has nearly 400 different sets. The Ninjago brand also has several different movies, television series, and videogames, and is the company’s longest-running and most successful, original franchise.

Harry Potter: Despite the series last movie coming out in 2011, the Harry Potter Lego sets are still going strong. The sets are definitely on the premium side of Lego’s catalog, as the Hogwarts base castle and Diagon Alley cost upwards of $500.00 each. Harry Potter’s global popularity is another reason for its success as a Lego partnership. Although no new books or movies in the standalone series have been planned, there is no shortage in demand. But at least we have options since we can’t trade Lego stock.

Will Lego Ever Go Out of Style?

Well, it’s been ninety years and Lego is still as popular as ever so the answer is probably a resounding no. Too bad, there’s no Lego stock. The key to Lego’s continued success is that the company has an incredible way of staying on the pulse of what is popular.

Not only does Lego seek out strong brands and franchises, but these same brands seek out Lego as well. Lego is a brand name that appeals to fans of all age groups, and the added revenue streams of movies and television series is a brilliant way to market its products. Would you be surprised if Lego was just as popular as it is today in another ninety years? I certainly wouldn’t be!

The digital aspect of Lego’s products is another reason why it has been able to keep up with technology. Lego is pumping out television series and movies based on its characters and offers children a way to enjoy superheroes without violence. This can of course be turned into more merchandise, as well as other revenue streams like mobile games. 

Conclusion on Lego Stock

So, as great of a brand, as Lego is, it’s unfortunate that we cannot buy shares of Lego stock. Lego continues to be a privately owned company and it does not seem like it has any plans of going public anytime soon. Whenever I hear Lego, I think fondly of building sets in my childhood, as well as playing with the Duplo sets with my own children. This is a part of Lego’s legacy, as it has been sewn into the fabric of our collective childhood. Nearly every child in the world has heard of or played with Lego, as the tradition continues to get passed on to the next generation. 

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