Naver and Kakao shares left behind amid stock market rally, down sharply since the start of the year
Naver and Kakao shares are underperforming relatively amid this year's KOSPI and KOSDAQ rallies. 5month 29Naver closed at 234,000won, while Kakao closed at 41,950won, down 5.26% and 32.45% respectively since the start of the year.
With the domestic stock market broadly rallying this year, Naver and Kakao shares are underperforming relatively. Their continued underperformance has been a recurring topic among investors. The securities industry says both companies are at a point where they need to demonstrate the profitability of their AI-related businesses.
According to the Korea Exchange, Naver shares 29 rose 14.15% compared with the previous trading day and 234,000 closed at won. Naver recorded a sharp gain in trading that day. Exchange data compile daily price changes and closing prices.
On the same day, Kakao shares rose 4.61% compared with the previous session and 41,950closed at won. Kakao's gain that day resulted from bargain buying. Kakao had previously faced strike risks after labor-management negotiations over performance bonuses broke down.
Compared with the start of the year, Naver's share price 5.26% lower. Kakao has fallen 32.45% so far this year. These figures are based on Korea Exchange data.
Naver's sharp rise on the day followed a report that Nvidia CEO Jensen Huang is expected to visit South Korea early next month and discuss ways to cooperate on artificial intelligence with major IT companies, including Naver. Expectations related to the report appear to have been reflected in investor sentiment. Kakao closed higher on the day as bargain hunters entered the stock after it had fallen amid past concerns about a strike.
Market analysts say it remains necessary to see how much artificial intelligence-related businesses contribute to the earnings of both companies. Shareholders say that the results of future assessments of the profitability of AI businesses will be important. The market is watching related disclosures and earnings announcements.
Sources: 파이낸셜뉴스 증권
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