[Weekly HOT Stocks] Kakao Hits New High for 3 Consecutive Trading Days

The stock price rose 9.59% in a week... Surpassing 400,000 won intraday for the first time since listing on the 27th

[Asia Economy Reporter Kum Boryeong] Over the past week, Kakao has continuously set new 52-week highs, attracting the attention of investors.

According to the Korea Exchange on the 29th, Kakao's stock price closed at 405,500 KRW the previous day.

Kakao showed a continuous upward trend for four trading days from the 24th to the 27th. The stock price, which was 370,000 KRW on the 21st, rose to 380,000 KRW on the 24th, 381,000 KRW on the 25th, 392,000 KRW on the 26th, and 410,500 KRW on the 27th. Although it recorded a decline of around 1% on the 28th, it rose 9.59% over the week.

The streak of new highs continued for three consecutive trading days starting from the 26th. In particular, on the 27th, it surpassed 400,000 KRW intraday for the first time since listing. On the 28th, it even surged to 416,000 KRW intraday.

Analysts attribute Kakao's soaring stock price partly to the upcoming listing of Kakao Games, considered one of the biggest IPOs in the second half of the year. Kakao is a major shareholder holding 58.9% of Kakao Games. Kakao Games is scheduled to be listed on the KOSDAQ market on the 11th of next month. The demand forecast on the 26th and 27th reportedly exceeded a competition rate of 1,000 to 1.

Kakao Games is a comprehensive game company responsible for game development, publishing, and platforms across the gaming industry. Its major subsidiaries include mobile game developer Friends Games, MMORPG developer XL Games acquired in February this year, and screen golf company Kakao VX acquired in 2017.

Choi Jong-kyung, a researcher at Heungkuk Securities, analyzed, "Kakao Games' strength lies in its proven platform and successful domestic and international publishing experience," adding, "Through the messenger used by 45 million people, it is possible to secure a large user pool and enhance marketing." He continued, "They have published overseas hit titles such as 'Path of Exile' and 'Onmyoji' domestically," and added, "Overseas publishing is also a strong competitive edge, with 'Black Desert (Pearl Abyss)' and 'Battlegrounds (Krafton)' being representative success cases."

Overall, Kakao's continued improvement in performance is also a positive factor. The Talk Board advertising, a key element of Kakao's performance improvement that began in the second half of last year, has expanded its customer base to small and medium-sized advertisers. As major advertisers increase their budgets, sales are steadily rising.

Jung Hoyoon, a researcher at Korea Investment & Securities, said, "Along with the growth of Talk Board, Kakao plans to expand performance-based advertising to important inventories it holds, such as premium spaces on Kakao Page and Daum Portal," adding, "Along with this, commerce transaction amounts such as Kakao Gift are also experiencing high growth of over 50% compared to the same period last year, and webtoon platforms like Kakao Page and Piccoma are also showing rapid increases in transaction amounts and sales, resulting in performance improvements across all business divisions."

This content was produced with the assistance of AI translation services.