Pokmon card sales restrictions trigger a "rollercoaster": Japanese second-hand trading platform Mercari rebounds after sharp drop, Citi calls it "oversold"

Mercari's Japanese shares rose more than 4% at one point on Friday before paring gains to close up 0.74%, extending their rebound. The move came after the Japanese C2C online second-hand trading platform announced restrictions on listings of Pokmon 30th anniversary merchandise, triggering a sell-off. The company said the restrictions will remain in place as long as it determines that a safe and reliable trading environment cannot be ensured. On Wednesday, the day the restrictions took effect, Mercari shares closed down 6.4%; they rebounded on Thursday, closing up 1.4%. Mercari said the temporary listing ban was prompted by concerns that a surge in transactions following the release of the 30th anniversary merchandise could lead to trading disputes and harassment of users involved in transactions. Citi attributed Wednesday's more than 6% decline to Mercari's announcement of the Pokmon card listing restrictions. The bank said Mercari's recent share price weakness has pushed it to "excessively pessimistic levels," that the stock is now "oversold," and that this pullback represents an investment opportunity. It added that Mercari's gross merchandise sales (GMS) growth in the second half of fiscal 2026 exceeded expectations, and a recovery across multiple categories could support double-digit growth. Citi also said that the suspension of trading in certain items is a negative for Mercari, but the impact is not significant enough to prompt a revision of its forecasts. The restrictions come amid a global Pokmon card boom. Online marketplace eBay said "Pokmon" searches on its UK site exceeded 6 million in July, highlighting continued demand for trading cards. According to prior reports, Pokmon card prices have surged 1,350% since 2020, according to an index compiled by Collectors, which owns card grading agency Professional Sports Authenticator. In February this year, influencer Logan Paul sold a rare "Pikachu Illustrator" card for more than $16 million, having bought it in 2021 for just over $5 million. New cards can sell out within minutes, with people coordinating on X and Discord to find out where to buy them. This month, a post on X said a Pokmon card sold at auction for $2.7 million, setting a record. Mercari signed an agreement with The Pokmon Company in 2023 to promote safer trading of Pokmon merchandise on its platform; in 2025, it introduced a policy allowing it to restrict listings when issues such as fraud, trading disputes, or severe price fluctuations threaten platform safety.