POP MART shares fell nearly 4% on Friday after investors began questioning whether its stunning third-quarter momentum can last. The Beijing-based toy maker, known for its viral Labubu dolls, reported up to 250% revenue growth in the three months through September, a performance that initially lifted confidence before profit-taking and growth concerns took over. Once the hottest name in China's consumer space, Pop Mart has now lost about 30% since its late-August peak as traders reassess how sustainable the craze really is.

Jeff Zhang, an analyst at Morningstar Inc., said Pop Mart's revenue growth likely surpassed market expectations but warned that expansion could slow from 2025 onward as the company's top line begins to plateau. Short-sellers have also been circling. Data from S&P Global showed short interest climbing to 1.4% of free float this week from just 0.2% in early September. Options activity tells a similar story: more than 28,500 contracts changed hands Thursday, with roughly 16,000 puts versus 12,500 callsan options skew suggesting growing demand for downside protection.

Meanwhile, a cooling resale market is starting to hint at softer demand. On Qiandao, a Chinese pop-toy trading platform, prices for a 14-figure Labubu mini box slid 27% over the past month to 1,149 yuan ($161), nearly matching its official retail tag of 1,106 yuan. The shrinking premiumlong seen as a barometer of collector enthusiasmsuggests a possible oversupply as well as fading scarcity appeal. For now, the question hanging over Pop Mart is whether the Labubu boom can evolve into something more durable before the market decides it's just another collectible fad.