Pop Mart’s flagship store in Shanghai sees shares tumble over 6% post-bullish earnings forecast. The toymaker expects a 350% profit increase and 200% revenue increase for the first half of 2025. Analysts remain cautious about sales growth outlook, prompting investors to take profits due to concerns over valuation and uncertain popularity of key intellectual properties.

Despite recent stock drop, Pop Mart’s Hong Kong-listed shares have tripled this year. An editorial criticizing “blind cards” and “mystery boxes” briefly impacted stock. Investors unconcerned about regulatory crackdown fears. Investment banks bullish on Pop Mart, with revenue up 170% in Q1. Nomura Bank raises target price to 330 Hong Kong dollars.

Pop Mart’s success contrasts with China’s economic downturn. Human-sized Labubu figurine sold for $150,000 at auction. Consumers seek emotional rewards amid financial uncertainty. Pop Mart differentiates from Sanrio and Miniso by allowing collectors to project their mood onto toys.

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1. The U.S. economy added 943,000 jobs in July, exceeding expectations and showing strong signs of recovery from the pandemic. Unemployment rate dropped to 5.4%, the lowest since March 2020.

2. Tesla reported record profits in the second quarter, with earnings of $1.45 per share, surpassing analysts’ estimates of $0.98 per share. The electric car maker also generated $11.96 billion in revenue.

3. Apple announced plans to scan iPhones for child sexual abuse images, sparking concerns over privacy and security. The new feature aims to detect known images of child abuse without compromising user privacy.

4. Amazon’s second-quarter earnings fell short of Wall Street expectations, with sales increasing by 27% to $113.08 billion. The e-commerce giant’s profit was $7.8 billion, lower than analysts’ estimates of $8.77 billion.: Labubu-maker shares drop, investors unimpressed by Pop Mart forecast