What Happened?
Shares of pop culture collectibles manufacturer Funko (NASDAQ:FNKO) fell 3.9% in the afternoon session after a broader market downturn triggered by a surprisingly weak August jobs report. The U.S. stock market saw sharp declines as the jobs data reinforced expectations for a Federal Reserve rate cut. While stocks initially rose on the prospect of lower borrowing costs, they quickly reversed as investors weighed the implications of an economic slowdown. Funko, as a consumer discretionary company, was affected by this negative sentiment, which saw numerous stocks in the sector decline. The report's indication of cautious hiring trends raises concerns about future consumer spending, which could directly impact companies that rely on non-essential purchases.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Funko? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Funko’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 5.9% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Funko is down 76.5% since the beginning of the year, and at $3.20 per share, it is trading 78% below its 52-week high of $14.50 from January 2025. Investors who bought $1,000 worth of Funko’s shares 5 years ago would now be looking at an investment worth $520.36.
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