“The latest acquisition will lead to a bigger global e-commerce portfolio, but it is inevitable for Naver to be negatively affected by the expected operating loss after the deal is finalized. The share price fell 7.08 percent to 164,000 won on Wednesday, a day after the firm announced the takeover.
Naver’s decision last week to acquire a full 100 percent stake in US social commerce marketplace for fashion Poshmark for 2.3 trillion won may work in favor of the tech giant in the long term, but the firm’s share price plummeted to a fresh low for the year following the announcement. “Naver’s biggest weak spot is its global influence, but through its latest acquisition of Poshmark, it has gained an e-commerce platform and user base in the US market,” said Ahn Jae-min, an analyst at NH Investment ＆ Securities. In order to recover both their market value and love from investors, the two tech giants must now make game-changing moves to boost their global competitiveness, analysts say. The Kospi in recent months has been overall weighed down by risks stemming from the US Federal Reserve’s recent series of aggressive rate hikes to combat high inflation. The average 55 percent drop in their share prices in the first 10 months of the year eclipses the benchmark index Kospi’s 25 percent slip from 2,988.77 to 2,232.84 in the same period. The two were among 343 of total 2,531 listed on the Kospi and Kosdaq - accounting for 13.55 percent of the total - that saw their share values halve in the past year, according to data from bourse operator Korea Exchange. Its market cap shrank from 50.1 trillion won to 22.6 trillion won in the meantime. Naver’s industry rival and operator of the nation’s most popular messenger app, Kakao’s shares fell some 54 percent - from 114,500 won to 50,900 won - in the cited period. 3 to 160,000 won on Friday, pulling its market cap down from 62.9 trillion won to 26.2 trillion won in the same period.
1 search engine operator Naver has fallen 57 percent since the first trading day of the year. Naver and Kakao, tech stocks that had moved the market during the COVID-19 pandemic, have recently become big disappointments to investors, having lost over a combined 63.3 trillion won ($44.4 billion) in market value since the beginning of the year.
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