Funko: No Cheer This Holiday Season

Gary Alexander32.84K FollowersFollow5ShareSavePlay(9min)CommentsSummaryFunko faces steep sales declines, margin pressure, and a challenging macro backdrop, prompting a reiterated "Sell" rating.FNKO's cost structure is hurt by tariffs and lower production volumes, forcing price hikes that reduce product accessibility and demand.Despite a new CEO and the possibility of being acquired due to low valuation, FNKO's cheapness reflects deteriorating fundamentals and value trap risk.Q4 guidance implies only modest sequential sales growth and persistent double-digit year-over-year declines, with margins under pressure. Anastasia Korchagina/iStock Editorial via Getty Images Affordability and stingier consumer spending are some of the key themes in macro headlines today, and though the stock market is up double digits in 2025, we should expect these headwinds to continue well into 2026. Watch out, in particular, for consumer discretionary stocks thatThis article was written byGary Alexander32.84K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.