How to Buy Funko Inc. (NASDAQ: FNKO) Stock

Invest in FNKO stock today with Interactive Brokers as your trusted online brokerage.

Funko Inc. (NASDAQ: FNKO) is a stock that you might not expect to pop up on your radar when searching for opportunities. The toy company has earned a reputation in pop culture for its vinyl figures and bobbleheads.  

Investing in Funko Inc. stock could potentially yield impressive returns, but it’s essential to approach this investment with knowledge and strategy. Whether you’re a seasoned investor or a beginner intrigued by this vibrant brand, understanding the steps to effectively buy Funko Inc. stock will be crucial.

In this article, we’ll guide you through the process, highlighting key considerations and tips to help you make informed investment decisions in this exciting market.

How to Buy Funko Inc. (NASDAQ: FNKO) Stock

Purchasing Funko stock is a simple and quick process. You need to create an account with a broker to be able to buy or sell Funko stock.

Here's a step-by-step guide to getting started with your Funko stock ownership.

Step 1: Pick a Brokerage

You can buy Funko shares through a broker. Choosing the best brokerage is a matter of choice. Each brokerage provides services tailored to suit a class of investors. The broker that suits your investing need may not meet the needs of another investor.

However, it is advisable to choose a brokerage that reflects your investing style. Regardless, factors that should be top of mind when picking a brokerage are security, license, U.S. Securities and Exchange Commission (SEC) registration, fees and commissions, ease of trading and withdrawing funds and minimum deposits

Step 2: Decide How Many Shares You Want

Decide how many Funko shares you want to purchase. This decision may ultimately depend on certain factors such as capital, investment strategy, risk appetite and outlook of the company based on analyst recommendations or fundamental analysis. Just like choosing a brokerage, there is no cut-and-dried method to deciding how many Funko shares you want to purchase. 

Step 3: Choose Your Order Type

An order type is an instruction to a broker to buy or sell a security on an investor's behalf. When you start to invest in Funko shares online, you place orders with your broker. You have a number of different order types to choose from. Your choice of order type depends on your strategy, knowledge and expertise. The different types of orders your broker may offer are market, limit, stop, stop-limit or stop-loss orders. 

Step 4: Execute Your Trade 

After you have submitted your order, your broker executes your trade, filling the buy or sell order. Timing is usually a significant factor to consider because orders are not always fulfilled immediately. The price investors ultimately pay for the stock will depend on the time and execution strategy adopted.

Since stock prices are constantly fluctuating and your trades route through a broker before being submitted to the market, you may not buy Funko stock at the exact price when you placed the order.

Where to Buy Funko

Funko shares are traded on the Nasdaq exchange and can be bought through any registered broker. 

Funko Stock History

Funko, Inc., known for its unique pop culture collectibles, made its public market debut on November 2, 2017, with an initial offering price of $12 per share, raising over $100 million in its IPO. Initially, the stock saw a strong performance, closing at around $15 for its first day of trading. The company's growth was propelled by its expansive product lines that included licensed figures from popular franchises such as Marvel, Disney and Star Wars.

By early 2018, Funko's stock peaked at approximately $36 per share, reflecting its popularity among collectors and fans. This surge was bolstered by a positive consumer response to their products and expansion into new categories.

However, Funko's stock faced fluctuations due to various market conditions and business challenges. In late 2018 and early 2019, the stock began a downward trend, falling to around $8 per share by the end of the first quarter. This decline was exacerbated by overproduction issues and concerns regarding market saturation, as footage of collectors growing weary of new releases began to surface. The company’s inventory levels were reportedly too high, which led to lower margins and prompted management to announce plans to streamline operations to address these issues. Additionally, the impact of the COVID-19 pandemic in 2020 caused disruptions in retail partnerships, further impacting sales and stock performance.

Despite these setbacks, Funko's stock saw a resurgence in late 2020 and 2021 as the demand for collectibles increased during the pandemic. Online sales surged as more consumers turned to e-commerce, allowing Funko to adapt successfully to the changing retail landscape. By late 2021, Funko's stock climbed back to approximately $20 per share. Major partnerships, product launches and new conventions helped revitalize interest. However, it's is crucial to note that by mid-2022, Funko stock again experienced volatility amid concerns over consumer spending and inflation.

As of late 2023, the company's stock is working to stabilize, reflecting the ongoing challenges and opportunities in the collectibles market while continuing to leverage its status as a cultural icon in pop culture merchandising.

FNKO stock chart as of 8/22/24. Source: TradingView

Pros and Cons of FNKO

When considering the collectible landscape, it's essential to weigh the pros and cons of FNKO to determine whether it aligns with your interests and investment strategies.

Pros:

• Growing popularity of collectibles: Funko's diverse range of licensed pop culture collectibles appeals to a wide audience and has seen increasing demand, potentially driving stock value.
• Strong brand recognition: As a well-known brand in the collectibles market, Funko enjoys significant visibility and loyalty among fans, which may translate into stable sales growth.
• Expansion opportunities: Funko has opportunities for growth through new product lines and partnerships, allowing it to capture emerging trends in the collectibles and entertainment industries.

Cons:

• Market volatility: The collectibles market can be unpredictable; changes in trends or consumer interests may negatively impact Funko's sales and therefore its stock price.
• Dependence on licenses: Funko relies heavily on licensing agreements with major franchises, and any changes or loss of these contracts could adversely affect their product offerings and revenue.
• Competition: Funko faces increasing competition from other collectibles companies and digital alternatives, which could limit their market share and impact profitability.

Should You Invest in FNKO?

Investing in Funko Inc. (NASDAQ: FNKO) offers a unique opportunity for collectors and investors alike to capitalize on the growing popularity of pop culture collectibles. With a well-established brand, a diverse range of products and a solid market presence, Funko continues to attract a loyal customer base.

As you consider purchasing Funko stock, it's essential to conduct thorough research and analysis, examining both the company’s financials and market trends. Keep in mind the nuances of the collectibles industry and how they can impact Funko’s growth potential.

By staying informed and strategic in your investment approach, you can position yourself to benefit from Funko's trajectory in the ever-evolving landscape of pop culture collectibles.

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