Lego posted record first-half revenue because children exist and parents remain susceptible to extortion. CEO Niels Christiansen told CNBC the company sees strong sales at both the high-end and value pricing spectrum. This counts as insight at a publicly traded company.
The high-end customers buy thousand-dollar Death Stars to display in their home offices during Zoom calls. The value customers buy smaller sets because their kids saw the same commercial. Both groups hand money to Lego. Christiansen gets paid to notice this happening.
Retail traders heard "record revenue" and immediately checked if Lego trades on the NYSE. It does not. Lego is privately held by the Kirk Kristiansen family in Denmark. These traders then Googled "how to invest in Lego" and found seventeen YouTube videos explaining why buying actual Lego sets constitutes a diversification strategy. Three of them already owned sealed Millennium Falcon boxes in their closets next to their Funko Pops.
The value pricing segment performs well because parents discovered that spending forty dollars on plastic bricks buys them ninety minutes of silence. The high-end segment performs well because adult collectors discovered that spending four hundred dollars on plastic bricks buys them zero minutes of self-awareness. Lego wins both ways.
Christiansen did not specify which segment drives more margin. He did not need to. The company prints money by injection-molding petroleum into interlocking rectangles that people organize by color in labeled drawers like f*cking psychopaths.
The technical analysis remains unchanged: none of this matters because you cannot trade it, and even if you could, you would somehow lose money on a company selling an addictive product to children with wealthy parents.
Photo by Xavi Cabrera on Unsplash
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