Pop Mart Cracks - Bubble Burst or Buy-the-Dip Moment? 🎈📉

Pop Mart ($POP MART(09992)$  ) dropped over 5% again yesterday—and it's not a one-off. We might be witnessing the tail end of a hype cycle that once felt unstoppable. The Labubu craze, blind box mania, and premium collector culture all helped fuel Pop Mart's rally... but what happens when the market decides it's seen enough?

📉 Signs of Peak Euphoria

Valuation was pricing in infinite demand from Gen Z collectors.

Labubu figures flooded resale platforms—too much supply, not enough fresh demand.

The company started expanding aggressively overseas, including licensing deals in Japan and Southeast Asia, but without material profit uplift yet.

🚨 The writing was on the wall: whenever a trend becomes mainstream in China, it often moves from must-have to meh surprisingly fast. The same buyers chasing limited editions last year are now struggling to sell at cost.

💬 My View As a momentum trader, I rode the Q1 breakout in Pop Mart and took profits near the top. But what struck me was how sentiment flipped instantly once the buzz cooled. This feels less like a healthy pullback and more like a structural rerating.

Here's what I'm watching:

If it closes below 220 HKD this week, that confirms a technical breakdown of the previous support band.

If retail flows shift into newer niche trends (e.g. anime NFTs, luxury micro-brands), Pop Mart could lose its cultural cachet.

🛍️ Still, I'm not shorting blindly—because:

Management has a history of smart product pivots.

New IP launches or international collabs could revive interest.

And China’s toy collectibles scene is still young by global standards.

🎯 My strategy: I'll wait for a capitulation flush or signs of institutional dip-buying before considering a re-entry. It needs a fresh growth catalyst—not just nostalgia.

So over to you: 🚨 Is Pop Mart's golden era done, or is this just a deep breath before the next leg up? 🧸 Are you still collecting, or have you moved on to the next trend? 📉 Would you short here—or wait for a bounce to fade?