[Weekly HOT Stocks] Naver Ranks 2nd in Net Purchases by Individual Investors... New Record Highs Also Achieved

The Jongga Price Rose 7.82% in One Week: From 249,500 Won on the 19th to 269,000 Won on the 26th

Naver Plus Membership (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Boryeong] Naver's (NAVER) second-quarter earnings are expected to meet market expectations, drawing increased interest from individual investors.

According to the Korea Exchange on the 28th, Naver ranked second among the top stocks in net purchases by individual investors during the week from the 22nd to the 26th. During this period, individual investors bought Naver shares worth 938.2 billion KRW and sold 720.8 billion KRW, resulting in a net purchase of 217.4 billion KRW.

Naver's second-quarter earnings are expected to meet market expectations. According to Hanwha Investment & Securities, Naver's consolidated second-quarter results are projected to record sales of 1.83 trillion KRW and operating profit of 245.1 billion KRW. Business platform sales are expected to grow by 9.1% year-on-year.

Kim So-hye, a researcher at Hanwha Investment & Securities, explained, "With increased online activity, shopping transaction volume has significantly increased, leading to higher-than-expected growth in shopping-based search advertising (CPC) and sales-linked commission (CPS). We also expect sales growth of 49% and 37% in the IT platform and content service sectors, respectively. This is attributed to the increase in Pay transaction volume linked to shopping and the growth in webtoon paying users (PU) both domestically and overseas."

Advertising revenue is expected to decrease by 1.1% compared to the previous year, but major advertisers' ad spending, which had bottomed out in April due to COVID-19, has somewhat recovered in May and June.

The stock price rose over the week. The closing price, which was 249,500 KRW on the 19th, increased by 7.82% to 269,000 KRW on the 26th. On the 23rd, it even surged to 289,000 KRW during intraday trading, setting a 52-week high.

Joo Young-hoon, a researcher at Eugene Investment & Securities, said, "Based on the launch of Naver Plus Membership and Naver Bank, Naver's market dominance encompassing techfin and commerce is further strengthening. We believe that the expectations for the future still outweigh concerns about valuation pressure following the recent stock price rise."