Funko Inc

Company Overview: Funko, Inc. (NASDAQ: FNKO) is a pop culture consumer products company. It is engaged in selling a range of pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music, and sports.

As per our previous US Daily Report published on ‘FNKO’ on 28^th July 2023, Kalkine provided a ‘Speculative Buy’ stance on the stock at USD 7.37 based on “price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis” and the stock price has now moved down by ~23.20% since then.

Noted below are the details of support and resistance levels provided in our previous report:

FNKO’s Daily Chart

FNKO's financial performance for both the fourth quarter and full year of 2023 displayed significant declines across key metrics. Net sales decreased notably, with gross profit and adjusted EBITDA also seeing substantial drops. These declines were primarily driven by decreased revenue and increased expenses, resulting in a significant net loss for the year, indicating ongoing challenges for the company. Looking ahead, FNKO anticipates improvements in its bottom line for 2024, despite facing challenges such as a softer content schedule due to recent Hollywood strikes and uncertainties surrounding shipping costs stemming from the Red Sea situation. Considering the above-mentioned fundamentals, current trading levels, risks associated, and volatile market conditions on the back of higher interest rates, a ‘Sell’ rating is assigned to the “FNKO” at the current market price of USD5.66 (as of 11 April 2024, 06:55 am PDT).  

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is April 11, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’