What Happened?
Shares of digital storytelling platform WEBTOON (NASDAQ: WBTN) jumped 5.6% in the morning session after the stock continued to rally following the previous week's blockbuster announcements of a partnership with Disney and a strong second-quarter earnings beat. The positive momentum is a continuation of last week’s major developments when the stock soared after the company announced a multi-year partnership with Disney. This deal will bring iconic comics from brands like Marvel, Star Wars, and 20th Century Studios to WEBTOON's vertical-scroll format. In addition to the landmark partnership, the company reported strong second-quarter results that surpassed analyst expectations, posting an adjusted profit of $0.07 per share on revenue of $348.3 million. Following the news, analysts reacted positively, with firms like Evercore ISI and Goldman Sachs raising their price targets on the stock.
After the initial pop the shares cooled down to $15.50, up 3.6% from previous close.
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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 3 days ago when the stock dropped 9.8% on the news that 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.
WEBTOON is up 14.1% since the beginning of the year, and at $15.50 per share, it is trading close to 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 $673.91.
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