Pop Mart’s stock price jumped more than 8% on Tuesday, reaching an intraday high of H$198, after falling to a monthly low of H$174 earlier this month. This marks the company’s strongest gain in five months, driven by investor optimism over its $32 million share buyback program, the first since February 2024. Despite the rally, the stock remains 42% below its 2025 peak.
Pop Mart share buyback boosts stock price
The $32 million share buyback signals that Pop Mart’s management considers the stock undervalued and aims to support shareholder returns. Analysts note that the move comes after a 40% decline from last year’s highs and reflects confidence in Pop Mart’s recent financial performance. Strong Labubu toy sales in 2025 bolstered the balance sheet, providing resources to enhance returns for investors.
Labubu toy sales drive revenue, but challenges emerge
Pop Mart’s popular Labubu toy remains a key revenue driver. Last year, the company reported revenue growth of 205% to over RMB 13 billion, a gross profit increase of 234% to RMB 9.76 billion, and net profit rising to RMB 4.5 billion. The net profit margin jumped to 33.7% from 21.2%, and total assets increased to RMB 21.3 billion.
However, signs indicate that the Labubu craze may be slowing. Black Friday sales in the US underperformed, and North American revenue growth fell to 424% in the last quarter, down from previous periods. Analysts warn that Labubu could follow the path of previous toy fads like Beanie Babies. Pop Mart’s expansion into entertainment, including Pop Land in Shanghai and a planned Labubu movie with Sony, aims to sustain growth, while development of new characters and international expansion could support the stock long-term.
Pop Mart stock technical analysis shows a downtrend
From a technical perspective, Pop Mart stock has been in a downward trend over recent months. A head-and-shoulders pattern formed with a neckline at $233, signaling bearish pressure. The stock remains below the 50-day and 100-day exponential moving averages, trading within a descending channel.
The recent share price jump may retest the channel’s upper boundary, but analysts expect the stock could fall toward key support around $150 before potentially rebounding later in the year. Technical trends, combined with Labubu sales performance and entertainment expansion, will likely determine Pop Mart’s stock trajectory in 2026.
