Pop Mart (09992.HK) continued its downward trend in today’s trading session. As of the latest update, the stock was down 8.95%, trading at HKD 199.40, reflecting intensified market caution toward the company’s near-term growth outlook.
According to a recent report by Morgan Stanley cited by National Business Daily, Pop Mart is transitioning from the “explosive growth” phase of the past two years into a period of more “sustainable growth.” The investment bank expects revenue growth from Labubu — one of Pop Mart’s flagship IPs — to slow markedly by 2026. Going forward, the company’s growth engine is expected to shift from reliance on a single blockbuster IP toward broader diversification driven by non-Labubu intellectual properties.
Previously, Pop Mart delivered an eye-catching performance in the third quarter of 2025, with total revenue surging by 245% to 250% year-on-year. This explosive growth was fueled by the launch of new products such as Mini Labubu and SP Sleepless Theater, along with revenue recognition from pre-sales shipped in the second quarter. At the same time, the core IP Labubu maintained strong global momentum, serving as a key driver of performance.
In the Chinese market, revenue rose 185% to 190% year-on-year. Offline channels recorded growth of 130% to 135%, while online channels posted an even more striking increase of 300% to 305%. Overseas markets performed even more impressively, with revenue jumping 365% to 370%. Among them, the Asia-Pacific region grew 170% to 175%, the Americas surged an extraordinary 1,265% to 1,270%, and Europe and other regions expanded 735% to 740%.
Despite the standout earnings, Pop Mart’s share price failed to hold its ground. Before and after the financial results were released, the stock experienced persistent selling pressure. On October 21, shares fell 8.08% in a single day, followed by another 9% drop on October 23, marking the steepest single-day decline since April. Morningstar analyst Jeff Zhang noted at the time that investors were increasingly concerned that Pop Mart’s revenue growth could peak this year, with momentum potentially weakening starting next year.
By late November, Bernstein Asia consumer-sector analyst Hu Meilin warned that the speculative enthusiasm surrounding the Labubu series was beginning to resemble the classic “boom-and-bust” cycle of 1990s Beanie Babies. She cautioned that the popularity of the fanged monster collectible could be nearing its peak, while investors remain uncertain about what will power Pop Mart’s next major sales growth engine, limiting the stock’s upside potential.
Adding to market pressure, bearish sentiment has continued to build. Short-selling activity in Pop Mart shares has risen sharply. Since December 2, the number of shares sold short has increased from 1.11 million to 1.62 million, while the corresponding short-selling turnover has surged from HKD 241 million to HKD 623 million, highlighting growing skepticism among traders.
