Japanese C2C marketplace operator Mercari saw its shares surge more than 4% on Friday before paring gains to close up 0.74%, extending a recovery after the company's decision to restrict listings of Pokemon 30th-anniversary merchandise sparked a selloff.
The company stated that the restrictions will remain in place as long as it determines that a safe and reliable trading environment cannot be guaranteed. On Wednesday, the day the restrictions took effect, Mercari shares tumbled 6.4%, before rebounding 1.4% on Thursday.
Where the story begins
Mercari cited concerns that the surge in transactions following the release of the anniversary merchandise could lead to disputes and harassment of users involved in trades as the reason for the temporary listing ban. Citi attributed Wednesday's over 6% drop to the announcement of the Pokemon card listing restrictions.
The bank noted that Mercari's recent stock weakness has pushed it to "excessively pessimistic levels," labeling the shares as "oversold" and viewing the pullback as an investment opportunity. Citi added that Mercari's gross merchandise sales (GMS) growth in the second half of fiscal 2026 exceeded expectations, with recovery across multiple categories potentially supporting double-digit growth.
What's behind the move
Citi also indicated that the temporary suspension of certain product transactions is a headwind for Mercari, but the impact is insufficient to prompt a revision of its forecasts. The restrictions come amid a global Pokemon card craze, with eBay reporting over 6 million searches for "Pokemon" on its UK site in July, highlighting sustained demand for trading cards.
According to indices compiled by Collectors, which owns card authentication firm Professional Sports Authenticator, Pokemon card prices have surged 1,350% since 2020. In February, influencer Logan Paul sold a rare "Pikachu Illustrator" card for over $16 million, having purchased it in 2021 for just over $5 million.
Why it matters
New cards can sell out within minutes, with buyers coordinating through X and Discord to identify purchasing channels. A post on X this month claimed a Pokemon card sold for $2.7 million at auction, setting a record. Mercari signed an agreement with The Pokemon Company in 2023 to facilitate safer trading of Pokemon merchandise on its platform, and in 2025 introduced a policy allowing it to restrict listings when issues such as fraud, transaction disputes, or extreme price volatility threaten platform security.