“Any slight deviation from basic assumptions or negative media reports can cause a decrease in stock prices” – warns Kevin Yin, JPMorgan analyst cited by Yahoo Finance.
Information has just appeared on the market that “Labubu enters the world of luxury products.” The Parisian company Moynat, which belongs to the LVMH group, announced exclusive cooperation with the famous artist Kasing Lung, the creator of, among others Labubu. The effect of collaboration will be a limited edition of leather accessories, which the premiere will have in October in Shanghai.
A strong decrease in the labub manufacturer's shares
However, instead of another euphoria on the stock exchange in relation to the action of Pop Mart, which draws handfuls from the phenomenon of Labubu, we have a more serious correction. On Monday, during the stock market session in Hong Kong, the quotations fell by over 6 percent. , and in the last five days they have lost 10 percent. values.
See also: Labubu is a bubble worth a billion dollars, which will break soon [OPINIA]
This is still a small discount compared to previous increases. Let us remind you that POP Mart's shares increased by 184 percent. from the beginning of the year and by as much as 427 percent Over the past 12 months, significantly exceeding the increases in the Hang Seng index.
“The problem is not that the Labubu brand falls. The sales dynamics remains solid. The problem is rather that Investors have already conquered share prices, as if every future success was guaranteed” – writes Yahoo Finance.
“Any slight deviation from basic assumptions or negative media reports can cause a decrease in stock prices” – warns Kevin Yin, JPMorgan analyst cited by Yahoo Finance.
Labubu business analysis
The analyst points out that four out of seven key factors, from good results for the first half of the year to cooperation with Uniqlo, “were well realized”. The success of the other goals, such as the upcoming series of animations “Labubu & Friends”, launch of Labubu 4.0 and new interactive toys is less sure.
There are also other short -term threats. Negative opinions about the quality of products, design and license have already appeared in the Chinese media.
“Company shares are listed after a high p/E indicator of 31 times for 2025 and 22 times for 2026 – these are indicators that leave A small margin of error” – we read.
For now, the JPMorgan recommendation states that Labubu manufacturer's actions seem “overheated”.
