Funko stock closed up 4.6 percent at a record Wednesday as investors bet that Fortnite’s 125 million users will buy small, squishy replicas of their favorite characters.
Fortnite addicts will soon be able to take their video-game battles off the screen and onto the living-room floor.
Funko’s partnership with Epic Games to create more than 10 product lines of Fortnite toys and collectibles, the first such branded deal for the game, sent shares up as much as 18 percent Wednesday, the biggest gain since it went public last November. They closed the session at $16.32, up 4.6 percent.
That was a record high, putting Funko’s messy initial public offering — which saw its valuation cut by more than a third in its opening day — well behind the company as investors bet that Fortnite’s 125 million users will buy small, squishy replicas of their favorite characters.
The partnership comes amid a roller-coaster week for Funko, which signed a licensing agreement last Thursday with Pokémon for a line of toys set to launch July 29 but fell Monday on a Goldman Sachs downgrade due to its rising valuation.
Most Read Business Stories
- We freaked out over Amazon's HQ2 search. But it turned out to be for all the wrong reasons | Danny Westneat
- U.S. pilots flying 737 MAX weren't told about new automatic systems change linked to Lion Air crash
- Starbucks laying off 350 people, mostly at Seattle headquarters
- Will Amazon's HQ2 sink Seattle's housing market?
- California bar clears lawyer Michael Avenatti of fraud allegations tied to his Tully's business dealings
“This collection will be a true celebration of Fortnite’s incredible popularity and cultural significance, and we believe our Funko Fortnite collectibles will strongly resonate with fans of the game,” Funko CEO Brian Mariotti said in a news release.
Funko’s performance stands out in a stagnant industry this year, with toymakers Hasbro and Mattel underperforming the S&P 500 year-to-date and the iconic Toys R Us business closing its doors for the last time.
GameStop, one of Funko’s top retailers, did not see a bump after Wednesday’s announcement despite generating about 8 percent of Funko’s revenue, according to data compiled by Bloomberg.
Toys may remain in the spotlight this weekend at the annual Comic-Con International convention in San Diego. More than 100,000 costumed fans are expected to pack the city for four days, some of whom may bring some of their favorite Fortnite characters or Funko bobbleheads to life.