Jim Cramer’s Bullish Take on Hasbro: A Strategic Play in a Tariff-War World

In a market rattled by tariff wars and AI hype, Jim Cramer has thrown his weight behind Hasbro (NASDAQ:HAS), praising the toy giant’s resilience and adaptability. “You’re doing this exactly right,” he declared, highlighting the company’s Q1 earnings beat, supply chain overhaul, and focus on iconic brands like Magic: The Gathering. Let’s dissect why Hasbro is catching Cramer’s eye—and whether it’s worth your investment.

The Earnings Beat That Sparked a Rally

Hasbro’s Q1 2025 earnings report was a win for shareholders. Revenue growth was fueled by the soaring popularity of Magic: The Gathering, a digital and physical game that’s become a cultural phenomenon. The stock surged 17% in April, rebounding from a 23.7% February dip—a stark reversal that Cramer attributes to the company’s “strategic agility.”

The key takeaway: Hasbro isn’t just a toy maker anymore. Its shift toward digital gaming and licensing (which now accounts for 50% of U.S. revenue) has insulated it from tariff-driven volatility.

Supply Chain Surgery: Cutting China’s Costs

The real magic, though, is Hasbro’s rapid diversification of its supply chain. CEO Chris Cocks revealed plans to slash reliance on China—from its current 60% to just 40% by 2026—a target he insists will be met early. Manufacturing has shifted to the U.S., Turkey, India, Vietnam, and Indonesia, with 500 SKUs already relocated.

Cramer applauds this move, calling it “a masterclass in risk mitigation.” Even with tariffs on Chinese imports hitting a proposed 145%, Hasbro’s sourcing flexibility has kept price hikes below competitors’—a critical edge in a market where families demand $10–$20 toys.

Hedge Funds Are Betting Big

With 39 hedge funds holding Hasbro stock as of Q4 2024, institutional confidence is high. Cramer’s Investing Club ranks HAS 2nd among its top picks, citing its “resilience in a choppy market.” Compare this to AI stocks, which Cramer admits offer faster returns but come with greater risk.

While AI names like NVIDIA (NVDA) dipped 25% YTD, Hasbro’s 9.2% YTD gain paints it as a stable alternative—a “buy the dip” play for long-term investors.

The Risks: Tariffs and the AI Arms Race

Don’t mistake Cramer’s approval for blind optimism. He cautions that tariffs remain a wildcard, with a potential $300M hit looming if trade tensions escalate. Plus, AI stocks dominate investor attention, leaving traditional sectors like toys in the shadows.

But here’s the kicker: Hasbro isn’t just surviving—it’s thriving. Its focus on experiential products (think Magic: The Gathering tournaments and digital platforms) aligns with Gen Z’s spending habits. And with 50% of U.S. revenue now tariff-resistant (via domestic production or digital sales), it’s built a fortress against China’s leverage.

Verdict: A Steady Hand in a Volatile Market

Hasbro isn’t the flashiest investment, but it’s a steady one. Cramer’s endorsement hinges on three pillars:
1. Strategic Supply Chain: Diversification is on track, shielding margins.
2. Brand Power: Iconic franchises like Nerf and Monopoly retain cultural relevance.
3. Digital Innovation: Magic: The Gathering’s success proves its ability to evolve.

The data backs this up: A 17% April rebound and 9.2% YTD gain show investor faith in its execution. While AI stocks may dazzle, Hasbro offers stability—a rare commodity in 2025’s market.

Final Take: For investors seeking a dividend-friendly, tariff-proof play with growth in gaming and nostalgia-driven brands, Hasbro is a compelling bet. Just keep an eye on trade negotiations—and remember, Cramer’s AI darlings might outpace it in the short term. But when volatility strikes, this toy titan is built to withstand the storm.

Bottom Line: Buy HAS for its adaptability, hold it for its resilience, and let the tariffs roll.