Build-A-Bear Beats Big Tech: Plush Toy Retailer Outpaces Nvidia, Apple With Over 1,600% Returns In 5 Years
Build-A-Bear Workshop Inc. has outperformed major tech companies like Nvidia and Apple, achieving a staggering 1,648.48% return over the past five years. This success is attributed to a strategic shift targeting nostalgic adults rather than just children. Analysts remain bullish on the stock, with a consensus price target of $54.14, indicating a potential upside. Despite a recent 3.63% drop in share price to $46.16, Build-A-Bear reported record first-quarter sales of $128.4 million, up 11.9% year-over-year, and a profit of $19.6 million.
While investors stayed fixated on artificial intelligence and the mega-cap tech giants leading the charge over the past five years, a quiet outperformer emerged: a small-cap retailer selling plush toys and kids’ accessories that has outpaced them all.
What Happened: On Wednesday, the founder of AI platform Bearly.AI, Trung Phan, highlighted this performance in a post on X.
The stock in question is Build-A-Bear Workshop Inc., which is known for its make-your-own stuffed animal stores, which have since become a staple in American malls.
A shift in the company’s business model has sent its shares soaring by 1,648.48% over the past five years, with Nvidia Corp. being a distant second at 1,491%, followed by Apple Inc., Microsoft Corp. and Alphabet Inc. at 144.72%, 147.79%, and 135.53%, respectively, over five years.
In his post, Phan notes the dramatic performance gap between the stocks, despite the broader frenzy surrounding AI and digital transformation during this period.
“Big Tech this, Big Tech that,” Phan says, pointing at the market’s obsession with these stocks, and yet the “big fluffy animal plush toys (Build-A-Bear)” managed to outperform big tech.
A few comments on Phan’s post credit Build-A-Bear’s rise to a shift in its strategy. According to Bryant Suellentrop, who runs a staffing agency, the company's pivot from marketing primarily to children toward engaging nostalgic adults with disposable income and access to a credit card played a key role in the stock’s surge.
Why It Matters: Analysts continue to maintain a bullish outlook on the stock, with 6 out of 7 being bullish, and 1 “Somewhat Bullish,” with an average consensus price target of $54.14, or a 17.28% upside from current levels.
Despite substantial tariff-related headwinds, the company stuck to its sales outlook for the full year, projecting growth in the mid-single-digit rate compared to the previous year.
During its first quarter results last week, the company reported a record $128.4 million, up 11.9% year-over-year, and ahead of estimates at $118.9 million, with a profit of $19.6 million, or $1.17 per share.
Price Action: Shares of Build-A-Bear plunged 3.63% on Wednesday, trading at $46.16 per share, but are up 1.82% after hours.
According to Benzinga’s Edge Stock Rankings, Build-A-Bear scores remarkably well across most key metrics and has a favorable price trend in the short, medium, and long-term. Click here if you want to see how it compares with the tech giants.
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