It’s minus 30 million won, but I can’t even get on the water…screaming ants

KOSPI and KOSDAQ are up 2%
Most of the top cap stocks are rising
Naver drops 7% to record new lows
Citi downgrade target price, JP

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As the domestic stock market rebounds, most of the top stocks by market capitalization are on the rise, but Naver is the only one showing a downward trend. Naver was pushed below 180,000 won, and the stock price returned to the level during the pandemic.

As of 12:54 pm on the 4th, Naver is trading at 179,000 won, down 14,500 won (7.49%) from the previous trading day. Shares are down 57% from their highs. On the other hand, the KOSPI is up 2.44%. The top 10 stocks by market cap all increase at once, except for Naver and Kakao. Semiconductor major stocks such as Samsung Electronics and SK Hynix are up more than 3%.

On that day, Naver broke its 52-week daytime low and fell to 178,500 won. This is the first time in about two years and five months that Naver has fallen below 180,000 won in the intraday market since April 22, 2020 (low in a day of 173,000 won). On the decline of the day, Naver lost its 8th position in market capitalization to Kia and was pushed back to 9th.

Individual investors cannot hide their disappointment at the desperate drop in share price even during a rebound. In stock trading rooms like portals, reactions like “This is a matter of controllability”, “I’m going to quit on average (average) 335,000 won”, “I can’t stop losing because it’s minus 30 million won, and I can’t even drink water because I’m afraid.” It came out Some people questioned the leadership of CEO Choi Soo-yeon, who was officially appointed CEO earlier this year.

The decline of Naver on this day is interpreted to be closely related to the reports of foreign securities companies. Heo Ji-soo, a researcher at Daishin Securities, explained, “Reports from foreign securities companies seem to affect Naver’s decline more than the Poshmark acquisition issue.”

Citi Securities lowered its investment rating on Naver by two levels from ‘buy’ to ‘sell’. We also lowered our target price by 48% from 328,000 won to 170,000 won. JP Morgan also lowered Naver’s target price from 270,000 won to 220,000 won.

On the same day, the news that it had acquired a 100% stake in Poshmark, the No. 1 C2C platform operator in North America, also fueled the decline. Poshmark’s acquisition is the largest ever since Naver was founded at 2.34 trillion won.

Poshmark is the most used trading platform in North America with more than 80 million users. Since it has the ‘sharing’ character of social networking services (SNS) such as Instagram and TikTok, securities analysts believe that synergy with Naver’s AI recommendation technology and live commerce will be high.

The problem is that it is difficult to make an immediate profit. Researcher Huh said, “The profitability itself has a lot of room for improvement in the future as it does not take much inventory and the commission is around 20%. However, he explained, “It seems that the market has evaluated the impact of profit dilution at the moment because it is in the red.”

Kim Jin-goo, a researcher at Kiwoom Securities, said, “The drop in share prices today seems to reflect risks to future profits rather than the acquisition amount itself.” It is considered that the market takes it negatively as it could adversely affect urgency. -term profitability as he takes over a company,” he said.

Naver spent a month of tears last September. The stock price fell on all but six of the 20 trading days. From the 1st of last month to the 30th of the same month, Naver decreased by 19.38%. During this period, the KOSPI fell by 12.38%, which was a bigger drop than that. During the same period, the market cap evaporated by almost 7 trillion won.

Shin Hyun-ah, reporter at Hankyung.com [email protected]

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