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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Naver’s aggressive investments dent earnings’

  • PUBLISHED :April 27, 2018 - 11:52
  • UPDATED :April 27, 2018 - 11:52
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[THE INVESTOR] Naver has missed market expectations in the first quarter as it is spending heavily for further growth, said Hyundai Motor Investment and Securities on April 27, lowering the target price to 1 million won (US$928.68) from 1.1 million won. 




Although it is maintaining growth, its spending and investments are increasing as well, especially in artificial intelligence and marketing, which will continue for the time being, said analyst Hwang Seong-jin. 

Analyst Kim Dong-heui of Meritz Securities agreed that its profitability will inevitably be slow due to investments. Its price-earnings ratio is lower than those of its global peers at minus 18 percent. Investor sentiments need to recover as risks from stronger regulations, on shopping service and users’ comments on news articles, are highlighted, pointed out the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)

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