[Market Movers] Webtoon Entertainment Soars on Disney Partnership... Naver and Webtoon Stocks Rally

On the morning of August 14, shares related to Naver and webtoons are showing strong performance in the domestic stock market, following a surge in the stock price of Webtoon Entertainment-the parent company of Naver Webtoon listed on the US Nasdaq-on news of a partnership with Walt Disney.

As of 9:40 a.m. on the same day, Naver's stock price is trading at 227,500 won per share, up 1.11% from the previous session. At the same time, Mr. Blue, a webtoon-related stock, is up 18.96% at 1,907 won. NBT has risen by 9.94%, and YLAB is up by 6.95%.

This is attributed to the announcement by Webtoon Entertainment that it has entered into a global content partnership with The Walt Disney Company, which led to an 81.2% surge in its stock price on the New York Stock Exchange on August 13 (local time). As a result, not only Naver-which holds approximately 62% of Webtoon Entertainment's shares-but also the broader domestic webtoon sector is experiencing strong buying momentum.

With the partnership between Webtoon Entertainment and Walt Disney, popular franchises such as Disney, Marvel, and Star Wars are expected to be produced as vertical-scrolling webtoons in the future.

Kim Aram, Senior Researcher at Shinhan Investment Corp., stated in a separate report on Webtoon Entertainment released that morning, "The news of the collaboration with Disney has sparked expectations for gaining Western users, which had been pointed out as the company's biggest weakness." She added, "While a favorable stock price trend is expected, investors should be mindful of increased short-term volatility due to the small float (13%) and the sharp rise in the stock price."