This Former Penny Stock is Now Outperforming Even Nvidia Stock After 4,658% Growth

Globe and Mail

2 days ago

If you were given a chance to guess the best-performing stock of the past 5 years, many would guess Nvidia (NVDA), Amazon (AMZN), Apple (AAPL), or some other AI-adjacent company. In reality, you wouldn't even be close. During the lows of the COVID-19 stock market crash, the stock in question reached a low of $1.02 but has since rocketed to $48.54 in today's price, a gain of 4,658%.
Over the past five years, Build-A-Bear Workshop (BBW), a specialty retailer known for its interactive stuffed animal experiences, has delivered a remarkable performance on Wall Street — outpacing not only the S&P 500 Index (SPY) but, in a surprising twist, even tech giant Nvidia in terms of stock price appreciation. Following the initial sell-off from the pandemic, Build-A-Bear began to recover. Shortly after bouncing off the $1 line, the stock doubled from its lows in only about a month. This means that over the past five years from today's date, Build-A-Bear is up 1,733%. Nvidia is up only 1,490% in that same time period.
Extraordinary Stock Gains
Build-A-Bear Workshop's stock has soared from under $3 in mid-2020 to over $50 at its peak in June 2025, representing over a tenfold increase. This explosive growth far exceeds the gains of many high-profile technology stocks, including Nvidia, whose own meteoric rise has been a central story of the artificial intelligence (AI) boom. BBW's 74% growth in the past year alone has trounced broader market indices and many individual tech leaders.
BBW's financials underpin its stock's rally. In the first quarter of 2025, the company reported record results, with an 11.9% increase in total revenues and a 42.7% year-over-year jump in earnings per share (EPS). The company's revenue for the trailing twelve months reached $496 million, with consistent year-over-year growth since 2021. This momentum is attributed to:
Aggressive expansion of its Mini Beans collectible line and new store openings
International growth and strategic partnerships
A robust omnichannel retail strategy, blending in-store experiences with digital transformation
BBW's profitability metrics are strong, with a market capitalization now exceeding $640 million, a price/earnings (P/E) ratio below 12, and healthy cash flow. Analysts continue to rate the stock as a 'Buy,' with price targets as high as $60 and no 'Sell' recommendations in sight.
Comparison to Nvidia
While Nvidia remains a dominant force in the semiconductor and AI sectors, its stock, despite significant gains, has not matched the percentage increase seen in Build-A-Bear Workshop over the same period. Nvidia's growth, though impressive in absolute terms, is outpaced by BBW's relative surge from a low base, highlighting the potential for outsized returns in overlooked sectors.
BBW's transformation from a mall-based novelty retailer to a dynamic, omnichannel brand has been key. The company's focus on experiential retail, product innovation, and international partnerships has resonated with consumers and investors alike. Its ability to consistently beat earnings expectations and deliver shareholder returns through dividends and buybacks has further fueled its ascent.
Build-A-Bear Workshop's five-year run is a case study in how nimble strategy and brand reinvention can deliver outsized returns, even eclipsing tech titans like Nvidia in relative stock performance. As of mid-2025, BBW stands as one of the market's most unexpected success stories, proving that sometimes, the bear can outrun the bull.