[Featured Stock] Kakao Games Soars 13% on News of New App Store Title Ranking No.1 Sales

[Asia Economy Reporter Kwon Jae-hee] Kakao Games is showing a surge of over 10% in the early trading session on the 21st. This is attributed to the news that their newly released game, "Uma Musume: Pretty Derby," ranked first in sales on the Apple App Store.

At 9:48 a.m. on the same day, Kakao Games was trading at 57,400 KRW on the KOSDAQ market, up 13.66% from the previous trading day.

Kakao Games had experienced a sharp drop of over 10% the previous day due to downward revisions in earnings estimates. Uma Musume was released at 11 a.m. on the same day and reached the number one spot in Apple App Store sales late at night.

In the securities industry, there is a growing perception that the previous day's decline in Kakao Games' stock price was excessive, and the new game's performance is seen as encouraging.

Daol Investment & Securities maintained the target price for Kakao Games at 83,000 KRW and upgraded its investment opinion from "Buy" to "Strong Buy" due to the excessive short-term price decline.

Kim Ha-jung, a researcher at Daol Investment & Securities, said, "The initial daily sales of Uma Musume recorded about 3 billion KRW, greatly exceeding market expectations (daily sales of 500 million to 1 billion KRW). This game is not one where sales are concentrated in the early stages, so a gradual decline and stabilization of sales are expected."

He added, "Based on the performance of 'Odin' in Taiwan, Kakao Games is expected to record operating profits that significantly exceed the second-quarter forecast of 86.7 billion KRW."

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