Pop Mart Stock Tumbles 20% as Labubu 4.0 Struggles to Maintain Collector Momentum

Pop Mart International Group’s share price has experienced a sharp decline exceeding 20% since the August 28 launch of its latest Labubu 4.0 collection, signaling weakening demand for the beloved collectible toys in China’s competitive designer toy market.

The downturn in equity value reflects deeper market concerns about the company’s growth trajectory. Labubu 4.0, priced at 79 yuan ($11) per unit and featuring 28 varieties of miniaturized plush designs, initially promised to extend the brand’s dominance. However, resale market data tells a different story. According to secondary trading platform Dewu, transaction prices for the newest Labubu models have contracted 14.3% to approximately 150 yuan each in the weeks following release, suggesting that collector enthusiasm may be cooling faster than anticipated.

Market Reaction and Analyst Perspective

The secondary market deterioration has triggered heightened investor concern about long-term demand sustainability. JPMorgan Chase downgraded Pop Mart’s stock to neutral on Monday, citing diminishing product popularity among the broader consumer base—a significant bearish signal that accelerated selling pressure. The stock plunged as much as 9% during the trading session before closing down 6.4%.

Kenny Ng, a Hong Kong-based securities strategist at Everbright Securities International, emphasized that “amid the increasing uncertainties, investors chose to sell and take profit first,” capturing the panic-driven sentiment gripping the market.

Founder Wang Ning’s Wealth Adjustment

The stock volatility has directly impacted Wang Ning, founder and CEO of Pop Mart. His net worth has contracted by nearly $6 billion over a compressed timeframe, declining from $27.5 billion in late August to the current $21.6 billion, according to Forbes calculations. The 38-year-old entrepreneur has dropped to China’s 14th richest individual—a notable slide from his previous position as wealthier than Alibaba cofounder Jack Ma, who currently ranks 7th on the billionaires list.

Company Response and Forward Outlook

Pop Mart’s management attributed the Labubu pricing pressure to deliberate supply expansion. “The company proactively increased product supply to align with the needs of our fans and consumers,” a company spokesperson stated, emphasizing that wider availability democratized access to collectibles. “The fact the product was significantly more accessible and a greater number of individuals successfully purchased one is a relevant factor.”

Ke Yan, head of research at DZT Research based in Singapore, projects sustained pressure on valuations throughout the next six months as profit-taking likely continues among institutional holders. However, the company maintains impressive annual performance—shares remain up over 180% year-to-date despite recent headwinds.

Analyst Jeff Zhang at Morningstar notes that growth deceleration may emerge in 2026 due to high base effects, particularly following explosive first-half results that included a nearly 400% profit surge driven by global Labubu enthusiasm. Wang Ning previously guided that the company could “easily” achieve 30 billion yuan in annual revenues this year.