[Click eStock] "AfreecaTV Filling Twitch's Gap and Chijijik"

On the 8th, Samsung Securities stated, "The vacancy left by Twitch is being filled by AfreecaTV and Naver's (NAVER) Chijijik," and recommended, "Since both companies are expected to achieve profit growth through securing new revenue models, we suggest taking the stock price adjustment as a buying opportunity."

On the same day, Samsung Securities researcher Odonghwan explained, "Twitch ended its domestic service on the 28th of last month," adding, "According to the daily active users (DAU) data released by Mobile Index, AfreecaTV's Android-based DAU increased by more than 20%, from an average of 400,000 to 500,000. Chijijik, which started its service in December last year, quickly secured users and nearly doubled its DAU from 200,000 in the early stages to 400,000 currently."

Currently, Chijijik's DAU has risen to about 80% of AfreecaTV's level, but user loyalty is still understood to be below that of AfreecaTV. According to average viewer numbers announced by Softcon, in the last week of February, AfreecaTV had 144,000 viewers, while Chijijik had 80,000, which is about 55% of AfreecaTV's level.

Researcher Oh stated, "The mid-tier streamer segment of AfreecaTV has been strengthened, centered on streamers who migrated from Twitch. In particular, these streamers are enhancing game content, which is expected to increase AfreecaTV's appeal as an advertising platform alongside content diversification," and added, "Although the user base absorbed from Twitch does not contribute significantly per capita in terms of star balloons compared to existing users, increasing subscription and advertising revenue will contribute to overall revenue growth."

He noted, "While AfreecaTV's benefits from Twitch's discontinuation have been prominently highlighted, Naver's Chijijik's performance is relatively undervalued," and said, "However, Chijijik has absorbed most of Twitch's streamers and user base in just over three months, establishing itself as the second-largest streaming platform domestically," pointing out, "There is a high possibility of long-term linkage with Naver's advertising or commerce."

Researcher Oh added, "AfreecaTV's stock price has adjusted downward from its peak due to the exhaustion of the Twitch withdrawal momentum, but recovery is expected around the first quarter earnings announcement," and continued, "Naver's stock price is sluggish due to the minimal revenue effect of Chijijik relative to total sales and concerns over competition with Chinese e-commerce companies. However, with gradual recovery in advertising revenue this year, faster-than-expected growth of Chijijik, technology exports to Saudi Arabia, and new orders for HyperCloudX, various growth momentum remains, making a stock price rebound possible."