What Happened?
Shares of digital storytelling platform WEBTOON (NASDAQ: WBTN) fell 9.8% in the morning session after the stock pulled back from a recent massive rally as technical indicators suggested it was overbought. The stock's sharp decline appears to be a technical pullback after a significant rally earlier in the week. The company's shares had surged over 80% following the announcement of a content partnership with Disney.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy WEBTOON? Access our full analysis report here, it’s free.
What Is The Market Telling Us
WEBTOON’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 80.6% on the news that the company announced a strategic partnership with Disney and reported better-than-expected second-quarter results. The online comic platform announced a major multi-year partnership with Disney to bring approximately 100 titles from iconic brands like Marvel, Star Wars, and 20th Century Studios to its vertical-scroll app. This deal is expected to significantly boost Webtoon's content library and engage its global user base. Adding to the bullish sentiment, the company also reported strong second-quarter financial results, posting a surprise profit of $0.07 per share, where analysts had anticipated a loss. Revenue also beat expectations, rising 8.5% year-over-year to $348.3 million. In response to the news, analysts at firms like Evercore ISI and Goldman Sachs raised their price targets on the stock, signaling confidence in the company's growth trajectory following the Disney partnership.
WEBTOON is up 9.9% since the beginning of the year, but at $14.93 per share, it is still trading 12% below its 52-week high of $16.96 from August 2025. Investors who bought $1,000 worth of WEBTOON’s shares at the IPO in June 2024 would now be looking at an investment worth $649.13.
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