WEBTOON Entertainment (NASDAQ:WBTN) Shares Gap Down - What's Next?

Key Points

• WEBTOON Entertainment's stock price dropped significantly from a previous close of $16.44 to an opening of $15.64, and last traded at $14.96 with a trading volume of 411,453 shares.
• Analyst ratings for WEBTOON Entertainment show a mix of support; with updates from multiple firms, including Morgan Stanley raising its target to $11.00 and Goldman Sachs increasing theirs to $15.00, while the consensus rating is a "Moderate Buy" with an average target of $15.43.
• The company's most recent earnings report revealed a profit of $0.07 EPS, exceeding expectations and indicating a revenue growth of 8.5% compared to the previous year, despite a negative net margin.

WEBTOON Entertainment Inc. (NASDAQ:WBTN - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $16.44, but opened at $15.64. WEBTOON Entertainment shares last traded at $14.96, with a volume of 411,453 shares changing hands.

Wall Street Analysts Forecast Growth

WBTN has been the topic of a number of recent research reports. Citigroup initiated coverage on WEBTOON Entertainment in a report on Thursday, May 15th. They set a "buy" rating and a $11.00 price objective on the stock. Evercore ISI lifted their price objective on WEBTOON Entertainment from $20.00 to $23.00 and gave the company an "outperform" rating in a report on Wednesday, August 13th. Morgan Stanley lifted their target price on shares of WEBTOON Entertainment from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Wall Street Zen upgraded shares of WEBTOON Entertainment from a "strong sell" rating to a "hold" rating in a research note on Saturday. Finally, The Goldman Sachs Group lifted their target price on shares of WEBTOON Entertainment from $11.00 to $15.00 and gave the company a "buy" rating in a research note on Wednesday, August 13th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $15.43.

WEBTOON Entertainment Stock Performance

The firm's 50-day moving average is $10.03 and its two-hundred day moving average is $9.46. The stock has a market cap of $1.97 billion, a P/E ratio of -19.55 and a beta of 1.12.

WEBTOON Entertainment (NASDAQ:WBTN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 12th. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.05. WEBTOON Entertainment had a negative net margin of 7.24% and a negative return on equity of 0.13%. The firm had revenue of $348.27 million during the quarter, compared to analysts' expectations of $341.63 million. During the same quarter in the previous year, the company posted $0.20 EPS. WEBTOON Entertainment's revenue was up 8.5% on a year-over-year basis. WEBTOON Entertainment has set its Q3 2025 guidance at EPS. As a group, research analysts forecast that WEBTOON Entertainment Inc. will post -0.26 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE raised its position in WEBTOON Entertainment by 966.9% in the 2nd quarter. Bank of America Corp DE now owns 823,708 shares of the company's stock worth $7,479,000 after purchasing an additional 746,505 shares during the last quarter. Ameriprise Financial Inc. raised its position in WEBTOON Entertainment by 4.4% in the 2nd quarter. Ameriprise Financial Inc. now owns 865,698 shares of the company's stock worth $7,861,000 after purchasing an additional 36,175 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in WEBTOON Entertainment by 8.6% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,816 shares of the company's stock worth $89,000 after purchasing an additional 774 shares during the last quarter. Jump Financial LLC acquired a new stake in WEBTOON Entertainment during the 2nd quarter worth $376,000. Finally, Amundi acquired a new stake in WEBTOON Entertainment during the 2nd quarter worth $243,000.

WEBTOON Entertainment Company Profile

WEBTOON Entertainment Inc operates a storytelling platform worldwide. The company's platform allows a community of creators and users to discover, create, and share new content. Its platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novels, which are text-based stories.