Is Labubu's golden streak over? Its founders' stock is plummeting.

Although Labubu has been a household name lately, Pop Mart shares have fallen in value. Is this a sign of market glut and the end of the plush rabbit's reign with a perky face?

Labubu , the plush creature that has been practically emerging from our refrigerators lately, has definitely dominated this year.

Designed by Kasing Lung, the plush toy has become an inseparable companion for children , Generation Z representatives and celebrities , as well as a popular addition to collector's bags , backpacks and a must-have styling element .

Labubu, or the Pop Mart toy, has taken over the world. Photo: David Kristianto / Unsplash

Primarily, he's responsible for the enormous success of Pop Mart , which has already raked in a lot of cash thanks to its furry character. As a reminder, in the first half of 2025, the "Monsters" franchise, which includes Labubu , generated a staggering $677 million in revenue, an increase of over 600 percent compared to the same period last year. Should we applaud? Yes, we can, but... There's one "but."

But according to Bloomberg , the Chinese toy maker's shares fell nearly 9 percent in Hong Kong , the most since April. This happened just after investment bank JPMorgan downgraded the company due to weak stimulus factors and an unattractive valuation .

- We believe the valuation is too optimistic and any minor fundamental setback or negative media reports could result in worse results - say JPMorgan analysts.

The ratings downgrade came amid signs of waning interest in Pop Mart's designer toys. However, the company has no intention of giving up.

The Chinese giant plans to release an animation inspired by the character and other The Monsters franchises before Christmas, as well as a new version of Labubu . There are also plans to introduce a new interactive toy.

Will this be enough? It's hard to say. Pop Mart needs to carefully consider each step, especially since other companies have also recognized the potential of selling collectibles through blind boxes.

A prime example is Kodak , which recently introduced its fun Charmera keychain cameras. It's hard not to see this move as inspired by Labubu's success.