Labubu-doll craze drives Pop Mart share price over 190% higher YTD. Can this multibagger stock rally more?

Pop Mart share price: Helped by strong profit growth and high demand for Labubu dolls, shares of Pop Mart, a Beijing-based firm, have risen nearly 200% so far in 2025 alone. Pop Mart is a Chinese company that designs, develops, and distributes designer toys and collectables. Its shares trade on the Hong Kong Stock Exchange.

The Labubu doll craze has significantly boosted Pop Mart's stock price due to its massive popularity and the company's strategic response.

Pop Mart share price trend

Pop Mart share price, which closed at 89.65 yuan on December 31 last year is currently trading at 266 yuan, recording a multibagger gain of 197%. The Chinese retail stock has been in the green for six months straight.

While Pop Mart stock took a breather in December 2024, shedding just 0.22%, it rose in all the months from February 2024 to November 2024, recording 10 months of gains in a row.

What's driving the craze for Labubu dolls?

Labubu was created a decade ago by Hong Kong artist and illustrator Kasing Lung. In 2019, Lung agreed to let them be sold by Pop Mart, which markets collectable figurines often sold in "blind boxes".

A buyer of a blind box toy does not know exactly what design they will receive until they open the packaging. The starting price for Labubu blind box toys sold in Pop Mart's stores is around 50 yuan.

Labubu, a quirky plush toy, saw a huge rise in its popularity after K-pop star Lisa from Blackpink was spotted with a Labubu and praised the doll in interviews and online posts. This endorsement sparked a worldwide demand, leading to long lines at Pop Mart stores and rapid sellouts online. In May, British football star David Beckham shared a photo on Instagram of his Labubu attached to a bag.

The company's "blind boxes" are creating a sense of exclusivity and encouraging repeat purchases, especially among Gen Zs (those born between 1997 to 2012). The company also expanded its presence internationally, opening new stores and enhancing its online platforms.

In the latest sign of frenzy, a Beijing auction house on Tuesday sold a four-foot-tall sculpture of a viral plush toy character for more than $150,000.

The impact of the Labubu doll craze is also visible in Pop Mart's financials. Net income for the Beijing-based toys company rose 188% to 3.1 billion yuan ($427 million) in 2024 compared to 1.1 billion yuan a year earlier, beating the 2.71 billion yuan analyst estimate, according to a Bloomberg report. Full-year sales more than doubled to 13 billion yuan. The performance of Labubu was “particularly impressive,” it added. Thirteen of its intellectual property products generated sales of over 100 million yuan.

The company said will continue to expand its global footprint with focus on North America and Europe, after reporting its profit more than doubled last year, thanks to the popularity of its patented products.

Can Pop Mart shares rally more?

Pop Mart shares have surged 1235.58% in 66 weeks, rallying from 20.2 yuan to 266.4 yuan, said Anshul Jain, Head of Research at Lakshmishree Investments, adding that the stock is now extremely overstretched from both short- and long-term moving averages, which are likely to act as magnets for a mean reversion.

“A breach below 245 yuan will trigger a corrective phase, pulling the stock back toward its average price zones. Traders should brace for potential consolidation or pullback in the near term,” Jain added.

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