The viral frenzy surrounding Labubu dolls, the quirky monster plushies that captivated celebrities and collectors worldwide, shows signs of cooling, triggering a sharp decline in shares of their maker, Pop Mart International Group Ltd. The Chinese toymaker’s stock tumbled almost 9% in Hong Kong trading on Tuesday, the steepest drop since April, erasing nearly $13 billion from its valuation since peaking on August 26, according to Bloomberg data (and as reported by Israel Hayom).
JPMorgan Chase & Co. downgraded Pop Mart to “neutral” from “overweight,” citing an unattractive valuation and weak near-term catalysts amid fading hype for the rabbit-eared, snaggle-toothed Labubu characters from the company’s “The Monsters” series. Despite the setback, Pop Mart’s shares remain up over 180% year-to-date, making it the top performer on the Hang Seng Index, fueled by explosive growth earlier in 2025. The company’s first-half revenue surged 204% to 13.88 billion yuan ($1.93 billion), with net profit skyrocketing 396% to 4.57 billion yuan, largely driven by Labubu’s global appeal.
Created in 2015 by Hong Kong-born artist Kasing Lung as part of his children’s book “The Monsters,” Labubu, a mischievous, elf-like creature with pointed ears and a toothy grin, debuted as a physical toy via Pop Mart in 2019. The dolls exploded in popularity in 2024, particularly after Thai-born K-pop star Lisa of Blackpink posted Instagram photos in April flaunting Labubu keychains on her bags, calling it her “secret obsession.”
This sparked a chain reaction among A-listers: Rihanna was spotted with a pink Labubu clipped to her Louis Vuitton tote in February 2025, David Beckham received one from his daughter Harper in May and attached it to his bag, while Kim Kardashian and Dua Lipa also showcased collections online. Sold in “blind boxes” for $20–$30 (with rarities fetching up to $150,000 at auctions), the surprise element and fashion accessory vibe turned Labubu into a billion-dollar phenomenon, contributing $400 million in revenue last year, a 726% jump.
The hype’s decline is evident in secondary markets, where resale premiums for mini Labubus have dropped 24% from pre-launch peaks two weeks ago, and overall demand wanes in China. Pop Mart paused sales in the UK and South Korea in May due to chaotic queues and fights, while Russian officials proposed a ban over the dolls’ “terrifying appearance” and lack of Russian labeling. Counterfeits dubbed “Lafufu” flood markets, prompting lawsuits like Pop Mart’s against a California 7-Eleven.
The craze’s intensity sparked bizarre incidents: In August, masked thieves ransacked a La Puente, California, store, stealing $7,000 worth of Labubus using a stolen Toyota Tacoma, which was later recovered; authorities arrested two teenagers in connection, seizing $30,000 more from a resale operation. In Russia, a 26-year-old woman signed a mock “soul-selling” contract for 100,000 rubles ($1,180) in a social experiment, using the cash for Labubus and a concert ticket.
To revive interest, Pop Mart plans an animation series, “Labubu and Friends,” slated for summer 2025, alongside a new Labubu version and interactive toys before Christmas, per JPMorgan analysts, though visibility remains low. The company eyes 30 billion yuan ($4.2 billion) in full-year revenue, expanding globally with mini phone-clip Labubus and store openings.