Mattel's Stock Surges After Alibaba Partnership

Shares of Mattel Inc. rallied 2.4% in premarket trade Tuesday, after the toy maker announced a partnership with Alibaba Group Holding Ltd. which includes selling Mattel toys in China through Alibaba's Tmall.com marketplace. Mattel will work with Alibaba's A.I. lab to develop new products for Chinese consumers. "By combining Mattel's unmatched expertise in childhood learning and development, with Alibaba's immense reach and unique consumer insights, our goal is to help parents in China raise children to be their personal best," said Mattel Chief Executive Margo Georgiadis. Mattel will begin product development immediately, with initial availability expected in mid 2017. Alibaba's stock tacked on 0.3% ahead of the open. Mattel shares have tumbled 17% over the past 12 months, while Alibaba's stock has soared 69% and the S&P 500 has climbed 25%.