Pop culture collectibles company Funko went public at $12 per share last November. The stock then plunged over 40% to $7 on the first day, marking the worst public debut of an IPO in 17 years.
The stock has since risen quite lot over the past months hitting the level of $30 per share in early September until moving back towards around $22 today.
What is Funko?
Funko was founded in 1998 as a bobblehead maker. It gained mainstream recognition with its lineup of collectible Pop vinyl figurines, which were inspired by the Japanese "super deformed" art style of large heads and small bodies.
The company signed licensing deals with top media and video game companies to produce Pop versions of their popular characters. It sells them through major retailers like Amazon, Target, and Hot Topic. 70% of Funko's sales came from the Pop brand in 2017, compared to 64% in 2016.
The company has also recently announced their collaboration to launch the most famous Pokémon Pop figures.
Should we consider?
Funko has managed to increase sales year on year and it is also expected to do so this year too. In comparison, big toy producing companies like Mattel and Hasbro are both expected to have a decline.
From a technical perspective, various indicators are giving the ‘green’ light signal to buy the stock. We can also see that the price has found a good support level on the 50-day moving average and my idea is that it should continue doing to try break the previous psychological resistance level which was hit at $30 per share.