Core Viewpoint - The recent 40% slump in Pop Mart's shares raises concerns about the company's long-term prospects, with fears that the Labubu craze may be waning [1]. Financial Performance - Despite the stock's decline, the company's first half revenue surged to $2 billion, indicating strong fundamentals [2]. - U.S. sales have increased by over 400% year-to-date, although this growth has slowed compared to the previous quarter [4]. Market Sentiment - The stock is currently trading at a record low valuation, with a forward valuation of 14 times, down from 45 times six months ago [4]. - The average 12-month price target for the stock is 359 Hong Kong dollars, suggesting an 84% upside from its last close [2]. Strategic Initiatives - The company is taking steps to sustain its popularity, including opening a theme park in Beijing and partnering with Sony Pictures to produce a Labubu movie [5][6]. - There is ongoing debate about whether Labubu will maintain its appeal or fizzle out like past trends [5]. Consumer Trends - Interest in the Labubu brand appears to be cooling, as indicated by Google Trends data [6].