Riding the Labubu Wave: Is Pop Mart (9992:HK) the Next Big Thing You Should Be Trading?

25 Oct 2024

In the fast-paced world of collectibles, few companies have captured the imagination of consumers like Pop Mart. Known for its designer toys and wildly popular blind box figures, Pop Mart’s signature character, Labubu, has ignited a frenzy among collectors. This surge in demand has translated into a remarkable 280% increase in Pop Mart’s stock (9992:HK) on the Hong Kong Stock Exchange (HKEX) this year alone.

 

As the buzz around Pop Mart continues to grow, investors are asking: Is this the stock you should be adding to your portfolio now, or is it just a fleeting trend?

 

The Rise of Labubu: A Collectible Phenomenon

Pop Mart’s success stems from its ability to blend art and commerce, creating a loyal community of fans around its collectible toys. Labubu, one of its most iconic characters, has become a must-have item for collectors, with demand driving higher sales and soaring stock prices.

 

The company’s strategic growth, from opening new stores across Asia to expanding its online presence, has only fueled its stock performance. With a loyal customer base and a business model built on exclusivity and anticipation, Pop Mart has managed to turn consumer hype into real investor value.

 

Pop Mart’s Stock: The Case for Trading Now

The question on investors’ minds isn’t just about whether Pop Mart is a good stock; it’s whether now is the right time to trade. Given the 280% increase in share value this year, the momentum behind Pop Mart’s stock is undeniable.

 

Strong Growth Potential: Pop Mart is capitalising on a global trend toward collectibles and fandom culture, tapping into a market that’s only expanding. With plans to expand its product range and further penetrate international markets, the growth potential remains strong.

 

A Loyal Consumer Base: The company’s ability to build a fanbase around its characters ensures a steady stream of repeat customers, which translates to consistent revenue growth and shareholder value.

 

Pop Mart’s Unique Position: As a company that blends art, entertainment, and commerce, Pop Mart is less susceptible to traditional market forces. Its reliance on niche consumer demand makes it a unique player in the stock market, offering a diversified option for traders looking beyond conventional sectors.

 

Will the Hype Last?

While Pop Mart’s rise is impressive, investors should consider the potential risks. Trends in collectibles can change, and while Pop Mart has successfully built a brand around Labubu, the company’s ability to innovate and stay relevant will be key to maintaining its stock performance. However, Pop Mart has shown resilience by expanding its product lines and investing in international growth, signaling that it may be more than just a fad.

 

As an investor, the question isn’t whether Pop Mart will continue growing—it’s whether you want to get in on the action now, while the momentum is high.

 

Trade Pop Mart (9992:HK) on the HKEX Today

Pop Mart isn’t just a story of consumer success—it’s a stock market success story. For traders looking to take advantage of this momentum, Phillip Nova 2.0 offers direct access to Pop Mart (9992:HK) on the Hong Kong Stock Exchange. With our advanced trading tools and market insights, you can seize the opportunity to trade one of the hottest stocks on the market today.

 

By trading Pop Mart on HKEX, you’re tapping into an emerging market trend driven by the global demand for collectibles and creative consumer goods. Whether you’re an experienced investor or just starting out, Pop Mart’s explosive growth presents a prime opportunity for traders looking to diversify their portfolios.

 

Why Trade with Phillip Nova 2.0?

Real-Time Market Data: Stay updated with the latest movements in Pop Mart’s stock price with real-time data on our Phillip Nova 2.0 platform.

Seamless Trading Experience: Access HKEX and trade Pop Mart stock effortlessly with our intuitive platform designed for fast and efficient trades.

Expert Insights: Get insights on Pop Mart’s market position, trends, and stock performance to make informed trading decisions.

 

Seize the Opportunity: Start Trading Pop Mart (9992:HK) Now

Pop Mart’s rise is one of the most exciting stock market stories of the year, and now is the time to take action. With its stock up 280% this year, there’s no better time to get involved in trading Pop Mart on the HKEX.

 

Don’t miss your chance to be part of the Labubu wave—trade Pop Mart now and ride the momentum! Sign up with Phillip Nova 2.0 today and start trading Pop Mart (9992:HK) along with other emerging opportunities on the Hong Kong Stock Exchange. Click here to try a Phillip Nova 2.0 now – https://bit.ly/3YcPt7C.

 

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Trade HKEX stocks on Phillip Nova 2.0 now! Try a demo here. Click here to open an account now.

 

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An Exchange Traded Fund (ETF) is a marketable security that is formed to track nearly anything, ranging from a specific index, sector, commodity, or increasingly, theme. They are most commonly used to track a basket of stocks, and can typically be accessed through the same channels as regular stocks. ETFs are typically separated into passively-managed ETFs that simply mirror the security they are tracking (e.g. the STI), and actively managed ones that attempt to deliver higher returns or specific investment objectives, often with a pre-specified theme in mind (e.g. ARK Invest’s Innovation ETF).

Why should I trade in ETF CFDs?

  • ETFs have been growing in popularity over the years. 2020 was the best year for ETFs yet, with global equity ETFs seeing more than $1T in inflows within a 12-month period. Using CFDs to gain exposure to ETFs allows for greater capital efficiency because only a portion of the contract value is required as margin to establish a position.
  • ETFs are particularly popular with investors seeking a relatively hassle-free investing experience, while desiring exposure to a range of specific and relatively understandable securities. Trading ETF CFDs brings greater convenience by eliminating the need for traders to hold multiple currencies in order to access global ETFs.
  • An investor wanting exposure to the post-pandemic economic recovery could open a position in the well-known SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500. Another investor that may be convinced of the future importance of Environmental, Social and Governance concerns (ESG) may find the increasing selection of ESG-themed ETFs that track a basket of high ESG-rating companies to be a good investment, rather than cherry-picking individual equities by hand. ETF CFDs can act as a powerful tool for traders can profit from both directions of the market by taking on long or short positions.

A look at two ETF CFDs we offer:

1) Has the ARKK been sunk?

ARK Innovation ETF (ARKK) ARKK is an actively managed ETF by ARK Invest that invests in a range of companies based on their innovative and industry-disrupting potential. ARKK’s largest holdings are in companies such as Tesla, Square, and Zoom. ARKK is down around -33% from peaking on 12th Feb and is currently in the red for the year to date as the market experiences a risk-off outflow of funds. Superstar fund manager Cathie Wood has however been consistently doubling down on her bets, buying even more shares in growth stocks that are going through their own tumultuous periods such as DraftKings, Peloton, Teladoc, and Tesla. In her view, ARKK is playing the long game, and remains steadfastly convinced in the long-term prospects of these growth stocks beyond this current bout of volatility. Similarly on outflows, investors are still betting big on ARKK as ARK Invest has only lost about $1.2B in assets this year across all its six funds, compared to seeing an inflow of $15.1B during the same period. Recently, investors have been nervously eyeing ARKK’s basket of tech stocks as their future earnings potential remain vulnerable to erosion through high inflation – the dominant concern of the market in recent weeks. As commodities – the major contributor to the recent heightened inflation fears – drops sharply from record highs, are investor concerns over hyperinflation overblown?

2) Searching for exposure to Asian equities?

iShares MSCI Asia ex Japan ETF (AAXJ) The AAXJ is currently trading -10.6% adrift of all-time highs seen in February, giving up gains in tandem with an Asia-wide equity sell-off at the time. Given that slightly over 40% of the ETF’s holdings are based in China, the ongoing tumult seen in Chinese equities currently have carried over nearly perfectly in the AAXJ, as Chinese investors take a breather after the stellar gains made over the past year. Looking ahead, Asia – and particularly China, is steaming ahead with its economic recovery. China is widely expected to be one of the best-performing major economies this year, providing a major boost to the outlook for corporate earnings. As the rest of Asia and the world gradually opens up their own economies, AAXJ is likely to again benefit from strong Asian outperformance amidst a strengthening trade outlook.

CFD is available for trading on Phillip MetaTrader 5 (MT5).

Features of trading CFD:

  • Trade in both the bull and the bear markets
    The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
  • Smaller barrier to entry
    Flexible and smaller contract sizes. This means that traders will be able to enter into a contract with a modest amount of capital.
  • No expiration date or risk of delivery
    Unlike futures which commonly have a fixed expiration date, CFD allows traders to perpetually hold the position(s). CFD is cash settled, no need to worry about the delivery of the underlying asset.

 

Benefits of using Phillip MT5:

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