What Happened?
Shares of pop culture collectibles manufacturer Funko (NASDAQ: FNKO) jumped 5% in the afternoon session after the company's stock benefited from a broader market rally fueled by strong U.S. economic data.
The positive momentum in the market came after new reports showed unexpected strength in the U.S. economy, buoying investor sentiment. Key data revealed that consumer spending at retailers was stronger than anticipated and unemployment claims fell, signaling a resilient job market. This encouraging economic picture often boosts consumer discretionary stocks like Funko, as it suggests shoppers may have more confidence and capacity to spend on non-essential items. Also, the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
After the initial pop the shares cooled down and closed the day at $4.75, up 1.9% from previous close.
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What Is The Market Telling Us
Funko’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 17.8% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit. Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.
Funko is down 64.2% since the beginning of the year, and at $4.87 per share, it is trading 66.4% below its 52-week high of $14.50 from January 2025. Investors who bought $1,000 worth of Funko’s shares 5 years ago would now be looking at an investment worth $825.22.
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