What Happened?

Shares of pop culture collectibles manufacturer Funko (NASDAQ:FNKO) fell 17.8% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit. Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.

The shares closed the day at $5.57, down 18.3% from previous close.

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What The Market Is Telling Us

Funko’s shares are very volatile and have had 28 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.

Funko is down 58% since the beginning of the year, and at $5.72 per share, it is trading 60.6% 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 $1,799.

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