Naver Smiles Amid Market Plunge, Starts Stock Price Recovery

Naver's Four-Day Consecutive Rise
Intraday Touches 190,000 Won
Stock Price Stagnant Around 200,000 Won Since Early Year
Q3 Strong Earnings Boost Stock Recovery Momentum

Recently, the stock market experienced a sharp decline, with the KOSPI falling below the 2,500 mark, causing turbulence. However, NAVER maintained a steady upward trend even in the falling market. During trading, the stock price touched 190,000 KRW, signaling a full-fledged recovery.

According to the Korea Exchange on the 15th, NAVER closed at 188,500 KRW, up 3.46% from the previous day. During the session, it rose to 190,500 KRW, surpassing the 190,000 KRW level for the first time since May. NAVER has continued its upward trend for four consecutive days.

Foreign investors and institutions led the rise in NAVER’s stock price. Foreigners were the largest net buyers this week, purchasing NAVER shares worth 310 billion KRW. During the same period, institutions also bought NAVER shares worth 102.8 billion KRW, making them the second-largest net buyers.

NAVER’s stock price had been sluggish throughout this year. The price, which was in the 200,000 KRW range at the beginning of the year, steadily declined to the 150,000 KRW range by August. Although the recovery was slow afterward, the stock price gained momentum following the Q3 earnings announcement. Lee Ji-eun, a researcher at Daishin Securities, stated, "There were market concerns about the slow progress of the AI business, which lagged behind global peers, but the sales growth rate is gradually improving through the advancement of existing businesses incorporating AI technology, and this trend is expected to continue into next year." She added, "With steady profit growth and still reasonable valuation, a positive stock price trend is anticipated."

Despite the overall sluggish market, NAVER was able to sustain its upward momentum thanks to earnings that exceeded market expectations in Q3 this year. NAVER posted sales of 2.7156 trillion KRW, an 11.1% increase year-over-year, and operating profit of 525.3 billion KRW, up 38.2%. This marked the highest quarterly performance for two consecutive quarters. These results surpassed market forecasts; according to financial information provider FnGuide, the consensus for NAVER’s Q3 earnings (average of securities firms’ estimates) was sales of 2.662 trillion KRW and operating profit of 493.5 billion KRW. Lee Hyo-jin, a researcher at Meritz Securities, analyzed, "Mobile main daily average time spent increased by more than 10%, leading to an 11% growth in display advertising (DA). Search advertising (SA) also expanded its growth rate to 9.5% with the introduction of place bidding."

There are forecasts that both earnings and stock price will improve next year compared to this year. Lee Junho, a researcher at Hana Securities, said, "In 2025, NAVER’s core business growth utilizing AI is expected to continue improving profitability. The willingness for shareholder returns proportional to profit strength is positive, and if investments for future growth engines based on global mid- to long-term strategies are executed, flexible re-rating is possible." Hana Securities projects NAVER’s operating profit next year to reach 2.2915 trillion KRW, a 16.8% increase from the previous year.

Researcher Lee Hyo-jin added, "Valuation has sufficiently lowered, and the growth rate in 2025 is expected to converge to a level similar to global players. Recently, with increased financial flexibility through share buybacks and cancellations, expanded shareholder returns will be possible next year, which supports an improved stock price trend."