What Happened?
Shares of pop culture collectibles manufacturer Funko (NASDAQ: FNKO) jumped 12.7% in the morning session after the company announced that its official e-commerce website, funko.com, began shipping products directly to customers in Mexico.
This strategic move opened up a significant new market for the pop culture collectibles maker, expanding its direct-to-consumer footprint internationally. By establishing a direct sales channel in Mexico, Funko created an opportunity to capture a new customer base and drive further revenue growth. Investors viewed the expansion favorably, as it signaled a proactive step toward increasing global sales and strengthening the company's brand presence beyond its existing markets.
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What Is The Market Telling Us
Funko’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Funko and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 3.3% on the news that investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
Funko is down 70.6% since the beginning of the year, and at $4.01 per share, it is trading 72.4% 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 $675.38.
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