Kakao traded at 33,450 won as of 1:55 PM on the 8th, down 1,950 won or 5.51% from the prior day, as securities firms continued downgrading target prices. Year-to-date through the 7th, Kakao stocks fell 41.10% while the KOSPI index rose 81.68%, with the current price roughly half the prior high of 69,700 won recorded October 27. Analysts stated that stock recovery requires demonstrated performance in the AI agent business beyond earnings improvement. The consensus estimates for Q2 projected revenue of 2.0529 trillion won (up 1.2% year-over-year) and operating profit of 223.4 billion won (up 20.2% year-over-year), according to FnGuide.
Four Securities Firms Downgrade Kakao Target Prices
Four securities firms issued target price downgrades for Kakao in the current month. DB Securities lowered its target from 69,000 won to 57,000 won. KB Securities reduced its target from 69,000 won to 57,000 won. BNK Investment Securities cut its target from 70,000 won to 61,000 won. Hanwha Investment Securities adjusted its target from 70,000 won to 62,000 won.
Q2 Consensus Estimates Project Double-Digit Operating Profit Growth
The consensus compiled by FnGuide from estimates published over the past three months projected Kakao's Q2 revenue at 2.0529 trillion won, up 1.2% from the same period last year. Operating profit for Q2 was estimated at 223.4 billion won, an increase of 20.2% year-over-year.
Analysts Cite AI Agent Business Performance as Recovery Requirement
KB Securities analyst Lee Ji-eun stated that the market's primary expectation for Kakao was performance in the AI agent business rather than advertising growth through KakaoTalk expansion. Lee noted that while the company initially aimed for group service integration and expansion into external and public sectors, no meaningful results have been confirmed yet. Lee added that the company is currently developing services for a small user base and that stock revaluation requires demonstration of AI agent user expansion, service competitiveness, and monetization potential.
Hanwha Investment Securities analyst Kim So-hye stated that while the buzz and user growth pace of already-launched services have been slower than market expectations, Kakao appears focused on securing user retention and experience completeness rather than short-term traffic. Kim noted that service integration to expand the user base and global partnership service onboarding are scheduled soon, adding that gradual revaluation is expected if AI agent monetization potential is confirmed even partially.
FAQ
How much did Kakao stocks fall year-to-date through the 7th?
Kakao stocks fell 41.10% year-to-date through the 7th, while the KOSPI index rose 81.68% in the same period.
What did analysts state as the requirement for Kakao stock recovery?
Analysts stated that stock recovery requires demonstrated performance in the AI agent business, including user expansion, service competitiveness, and monetization potential, beyond earnings improvement.
