WEBTOON Entertainment (NASDAQ:WBTN) Shares Gap Down After Earnings Miss

WEBTOON Entertainment Inc. (NASDAQ:WBTN)’s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $11.52, but opened at $9.46. WEBTOON Entertainment shares last traded at $10.62, with a volume of 254,950 shares traded.

The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.01). WEBTOON Entertainment had a negative net margin of 24.94% and a positive return on equity of 1.36%. The business had revenue of $330.69 million during the quarter, compared to analyst estimates of $336.77 million. During the same quarter last year, the firm posted ($0.03) earnings per share. The company’s revenue was down 6.3% on a year-over-year basis.

WEBTOON Entertainment News Summary

Here are the key news stories impacting WEBTOON Entertainment this week:

• Positive Sentiment: Company highlights a path to double‑digit revenue growth in 2026 driven by a new Disney partnership and AI-driven user expansion — a strategic growth catalyst that could lift monetization over time. Webtoon targets 2026 double-digit revenue growth
• Positive Sentiment: Management is actively engaging investors via multiple upcoming conferences (investor events and presentations), which helps visibility and may accelerate analyst coverage and partnership conversations. Investor Conferences
• Neutral Sentiment: Company presented at the Morgan Stanley TMT conference (transcript posted) — useful for incremental color on execution and strategy but not an immediate earnings driver. Morgan Stanley presentation transcript
• Neutral Sentiment: Comparative coverage pieces (e.g., Braze vs. WEBTOON) and explanatory writeups summarize market context and risks but do not change fundamentals by themselves. Braze & WEBTOON head-to-head
• Neutral Sentiment: Goldman Sachs reaffirmed a “neutral” rating with a $10 price target (slightly below market), keeping analyst sentiment cautious but not outright negative. (No article link provided.)
• Negative Sentiment: Q4 results missed: EPS ($0.05) vs. ($0.04) expected; revenue $330.7M vs. $336.8M estimate; revenue down ~6.3% YoY — a near‑term performance disappointment. Earnings release & transcript
• Negative Sentiment: Weak Q1 guidance: revenue guide $317M–$327M vs. consensus ~$347.5M — the below‑consensus guide is the primary driver of near‑term downside as it implies slowing top‑line momentum. (Guidance reported 3/4.)
• Negative Sentiment: HSBC downgraded WBTN from buy to hold (PT $11.50) and broader technicals show the stock trading below its 50‑day ($12.22) and 200‑day ($14.57) moving averages; volume was elevated versus average — signs of near‑term selling pressure.

Analyst Ratings Changes

A number of analysts have issued reports on WBTN shares. Weiss Ratings reissued a “sell (d-)” rating on shares of WEBTOON Entertainment in a research note on Wednesday, January 21st. Zacks Research lowered shares of WEBTOON Entertainment from a “strong-buy” rating to a “hold” rating in a report on Thursday, November 20th. Wall Street Zen downgraded shares of WEBTOON Entertainment from a “hold” rating to a “sell” rating in a report on Monday. UBS Group lowered shares of WEBTOON Entertainment from a “buy” rating to a “neutral” rating in a research report on Friday, November 14th. Finally, HSBC lowered shares of WEBTOON Entertainment from a “buy” rating to a “hold” rating and set a $11.50 price target on the stock. in a report on Wednesday. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $15.07.

Institutional Investors Weigh In On WEBTOON Entertainment

Several large investors have recently made changes to their positions in WBTN. Ameriprise Financial Inc. lifted its holdings in shares of WEBTOON Entertainment by 8.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 939,475 shares of the company’s stock valued at $18,235,000 after acquiring an additional 73,777 shares in the last quarter. Bank of America Corp DE raised its position in WEBTOON Entertainment by 966.9% in the second quarter. Bank of America Corp DE now owns 823,708 shares of the company’s stock valued at $7,479,000 after purchasing an additional 746,505 shares during the period. Geode Capital Management LLC raised its position in WEBTOON Entertainment by 4.4% in the fourth quarter. Geode Capital Management LLC now owns 550,280 shares of the company’s stock valued at $7,171,000 after purchasing an additional 23,420 shares during the period. Vanguard Group Inc. lifted its stake in shares of WEBTOON Entertainment by 22.8% during the third quarter. Vanguard Group Inc. now owns 427,623 shares of the company’s stock worth $8,300,000 after purchasing an additional 79,295 shares in the last quarter. Finally, State Street Corp boosted its position in shares of WEBTOON Entertainment by 0.9% in the fourth quarter. State Street Corp now owns 366,437 shares of the company’s stock worth $4,775,000 after buying an additional 3,443 shares during the period.

WEBTOON Entertainment Stock Down 0.6%

The firm has a market cap of $1.36 billion, a price-to-earnings ratio of -3.92 and a beta of 1.94. The business has a 50 day moving average price of $12.22 and a 200-day moving average price of $14.57.

WEBTOON Entertainment Company Profile

Webtoon Entertainment Inc operates WEBTOON, a leading digital comics platform offering a diverse library of user-generated and professionally produced webcomics. The company enables creators around the world to publish serialized content in a vertical-scrolling format optimized for mobile and web consumption. Through its platform, readers can access thousands of titles across genres such as romance, fantasy, drama, and action, with both free-to-read episodes and advanced access options supported by microtransactions and advertising.

Founded as part of Naver Corporation and launched internationally in 2014, Webtoon Entertainment has grown rapidly by fostering a direct connection between comic creators and global audiences.