Funko Is An Interesting Stock, But The Company Needs More

Mar. 30, 2025 7:28 AM ETFunko, Inc. (FNKO) StockFNKO
Steven Mallas
1.85K Followers

Summary

  • Funko's Q4 results show flat revenue but improved gross margins and better bottom-line performance, making it a hold due to macroeconomic risks and technicals.
  • The company should consider creating its own intellectual properties to diversify revenue streams and reduce reliance on licensing, enhancing long-term growth potential.
  • Valuation metrics are attractive, but short-term risks like tariffs, inflation, and inventory challenges persist, warranting a cautious approach.
  • Funko could someday be a valuable acquisition target if it ever built up a library of original IP.
  • Perhaps AI could be consulted in the future to make content and predict trends.

Row of figures of American company Funko Pop in the shop window

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Funko (NASDAQ:FNKO) is one of those small-cap stocks that has a compelling story behind it: in our time of devotion to streaming and comic-cons and all sorts of temples to pop culture, it should be a solid candidate for

This article was written by

1.85K Followers
I have previously written articles for The Motley Fool, TheStreet, and AOLs BloggingStocks.I also write fiction. I have stories published at Nikki Finke's Hollywood Dementia site, including "The Streaming Service," "The Screenwriterman," "Mygalomorph" and "Spielberg's Last Film."Here is a link to my YA book, "Abner Wilcox Thornberry and The Witch of Wall Street."This is a collection of short horror stories: Tales From Salem, Mass.

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