by Hwang Yoonju
Published 27 Apr.2022 10:49(KST)
[Asia Economy Reporter Hwang Yoon-joo] Krafton hit a new 52-week low in just two days. Expectations that the first-quarter earnings this year would fall short and the Nasdaq's sharp 4% decline the previous day in the U.S. dampened investor sentiment.
As of 10:35 a.m. on the 27th, Krafton was trading at 237,500 KRW, down 4.43% (11,000 KRW) from the previous trading day. This is the lowest price since its listing last year.
According to FnGuide, Krafton's first-quarter earnings estimates show revenue of 511.8 billion KRW, an 11.03% increase compared to the same period last year, but operating profit is expected to fall by 15.90% to 191.1 billion KRW. Net income is also estimated to decrease by 20.89% to 153.5 billion KRW.
Previously, NH Investment & Securities analyst Ahn Jae-min stated, "the first half of the year is a momentum gap period with no new releases," adding, "Information about new releases scheduled for the second half will gradually be disclosed."
Meanwhile, the Nasdaq index, which is heavily weighted toward U.S. tech stocks, fell sharply by 3.95% compared to the previous session, which is also interpreted as affecting investor sentiment. Alphabet fell about 4% due to weak earnings, Microsoft (MS) recorded earnings in line with expectations but still declined, and Tesla plummeted 12% amid concerns that CEO Elon Musk might sell shares to raise funds for the Twitter acquisition.
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