JAKKS Pacific Partners with COVER to Launch hololive Products
JAKKS Pacific (JAKK) and COVER Corporation (COVCF) announced a partnership to create and distribute officially licensed hololive consumer products in North America. Under the agreement, JAKKS Pacific will become one of the first major US manufacturers to bring official hololive merchandise to market, featuring fan-favorite VTubers from hololive production's English talent roster. The product line will debut with collectibles and consumer products inspired by Mori Calliope, Takanashi Kiara, and Ninomae Ina'nis, three of the most influential and recognizable VTubers in the world. JAKKS will design, manufacture, market, and sell a wide-ranging assortment of figures, plush, novelty items, and role-play products, developed with authenticity and quality at the forefront. Products will be distributed across the US through multiple channels, including venue and event sales, JAKKS' direct-to-consumer platforms, and select retail partners, significantly expanding fan access to official hololive merchandise.
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- e.l.f. Beauty Valuation Edge: e.l.f. Beauty (ELF) is trading at a forward P/E of 24 and a PEG ratio below 0.4, indicating significant undervaluation, particularly as it captures market share among younger consumers, with growth expected from its acquisition of the Rhode brand.
- Rhode Brand Opportunity: Rhode achieved over $200 million in sales in less than three years, and e.l.f. plans to expand its distribution through LVMH's Sephora by increasing product variety and marketing efforts, which should drive strong growth in the coming year.
- Jakks Pacific Undervaluation: Jakks Pacific (JAKK) trades at a forward P/E under 6.5, and despite a challenging consumer environment, the company achieved its highest gross margins in over 15 years, demonstrating resilience in adversity.
- Children's Movies Boost Sales: With a robust lineup of children's movies this year, Jakks' toy and costume sales are expected to benefit, especially with Halloween falling on a weekend, making revenue forecasts appear conservative; combined with its low valuation, the stock is a buy.
- Valuation Advantage of E.l.f. Beauty: E.l.f. Beauty trades at a forward P/E of 24, with a PEG ratio below 0.4, indicating strong growth potential in the mass cosmetics market, especially following its acquisition of Hailey Bieber's Rhode brand, which is expected to boost sales significantly.
- Expansion Opportunities for Rhode: Rhode achieved over $200 million in sales in just three years, and E.l.f. plans to enhance its distribution through LVMH's Sephora by increasing product variety and marketing efforts, driving strong growth in the future.
- Undervalued Jakks Pacific: Jakks Pacific has a forward P/E under 6.5, and despite challenges in the consumer environment, the company achieved its highest gross margins in over 15 years, demonstrating resilience and potential in the market.
- Sales Boost from Children's Movies: With a strong lineup of children's movies this year, Jakks' toy and costume sales are expected to benefit, particularly with Halloween falling on a weekend, which will further drive revenue growth, suggesting that its conservative revenue forecasts may be exceeded.
- Amazon's Investment Value: Amazon (AMZN) has a market cap of $2.2 trillion and a forward P/E ratio below 28, presenting a significant discount compared to Walmart and Costco's 40 times, allowing investors to buy 5 shares for $1,000, with growth expected from its e-commerce and cloud computing leadership.
- Crocs' Turnaround Potential: Crocs (CROX) has a market cap of $3.9 billion and a forward P/E of about 6, with a free cash flow yield of 16%; despite challenges from the HeyDude acquisition, strong international sales and plans to open 250 new stores in China, India, and Western Europe could boost its stock, allowing investors to buy 12 shares for $1,000.
- Jakks Pacific's Growth Opportunities: Jakks Pacific (JAKK) has a market cap of $226 million and a forward P/E under 6.5; despite facing high tariffs and consumer pressures, it achieved a 15-year high gross margin of 32.4% and has no debt, with potential growth from a strong slate of children's movies, allowing investors to buy 50 shares for $1,000.
- Market Environment Impact: The overall consumer market faces challenges, yet companies like Amazon, Crocs, and Jakks Pacific demonstrate strong rebound potential through innovation and market expansion strategies, making them attractive long-term investment opportunities.
- Amazon Discount Trading: Amazon (AMZN) is currently trading at a forward P/E ratio below 28 times, significantly lower than Walmart and Costco's over 40 times, indicating a strong discount while its retail sales growth remains robust, showcasing the company's competitive edge in e-commerce.
- Crocs Turnaround Opportunity: Crocs (CROX) trades at approximately 6 times forward P/E and a 16% free cash flow yield, facing challenges post-HeyDude acquisition, yet plans to open 250 new stores internationally, particularly in China and India, could significantly boost its stock if successful in its turnaround efforts.
- Jakks Pacific Market Potential: Jakks Pacific (JAKK) has seen its stock rise over 20% this year but still trades at a forward P/E under 6.5 times, expected to benefit from a strong slate of children's movies, including Toy Story 5 and The Super Mario Galaxy Movie, which will drive growth in its toys and costumes segments.
- Investment Opportunities in Consumer Sector: There are several quality cheap stocks in the consumer sector, and if investors can allocate $1,000 into these stocks, they may have the opportunity to achieve substantial returns in the future, especially in the context of market volatility where finding undervalued assets is crucial.
- Partnership Highlights: JAKKS Pacific has entered a new licensing partnership with Japanese publishing giant Kodansha to design, manufacture, and sell toys and collectibles based on 'Attack on Titan' and 'Gachiakuta', marking a significant expansion into anime-driven products.
- Product Diversity: The new lineup will feature a wide range of figures, plush toys, and tech accessories aimed at both core collectors and broader retail audiences, with distribution planned across specialty retailers, online channels, and direct-to-consumer platforms.
- Market Potential: Kodansha's 'Attack on Titan' has sold over 140 million copies in the past decade, indicating strong market demand, while 'Gachiakuta' has quickly built a dedicated following since its 2022 serialization, with a 2025 anime adaptation set to further enhance its reach.
- Brand Strategy: JAKKS Pacific executives noted that this collaboration will leverage Kodansha's rich brand heritage, aiming to translate these beloved anime properties into high-quality consumer products, thereby enhancing the brand's competitiveness in the global market.
- Partnership Expansion: JAKKS Pacific extends its partnership with Aniplex to launch a new line of Demon Slayer costumes, toys, and accessories, which is expected to further enhance JAKKS's influence in the anime market.
- Product Diversification: The new agreement includes 2.5-inch and 3.75-inch scale figures, playsets for 3.75-inch figures, and tech accessories, enriching the product line to meet fan demand for diverse merchandise.
- Market Potential: By July 2025, the circulation of the Demon Slayer manga exceeded 220 million copies, indicating significant market potential, and JAKKS's expansion will help capture this growth opportunity.
- Brand Impact: Through its collaboration with Aniplex, JAKKS Pacific not only solidifies its position in the anime sector but also leverages the global popularity of Demon Slayer to enhance brand recognition and market competitiveness.










