What Happened?
Shares of digital storytelling platform WEBTOON (NASDAQ: WBTN) fell 2.1% in the afternoon session after the stock was caught in a wider market downturn that particularly impacted technology stocks.
The selloff appeared to be driven by broad market anxiety as Wall Street returned from a long weekend. Investors showed concern over high valuations in the technology sector, or what some reports called "frothy technology stocks," alongside rising global bond yields. This widespread pressure on the tech industry contributed to the decline in WEBTOON's shares, as the company moved in line with the broader sector trend.
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 7 days ago when the stock gained 3.1% on the news that analysts signaled growing optimism by raising their earnings estimates for the company's upcoming quarter and full year. The move reflects a strong consensus among analysts in revising earnings forecasts upward for the online storytelling platform.
According to reports, the consensus earnings estimate for the next quarter has increased by 43.75% over the last 30 days. For the full year, the consensus estimate has risen by 55% over the past month. Empirical research has shown a strong correlation between upward trends in earnings estimate revisions and near-term stock price movements, suggesting investors are responding positively to the company's improving financial outlook.
WEBTOON is up 4.3% since the beginning of the year, but at $14.17 per share, it is still trading 16.4% 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 $616.14.
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
