Kakao Corp (035720) Earnings: 2Q Operating Profit Misses Estimates Despite Strong Sales

Kakao Corp on Smartkarma

Analyst coverage of Kakao Corp on Smartkarma has recently focused on the arrest of Kim Beom-Su, the founder of Kakao Group. An insight report by Douglas Kim titled “Kakao Group Founder Kim Beom-Su Gets Arrested – What’s Next?” highlights the negative near-term impact on Kakao companies, including Kakao Corp, Kakao Bank, Kakao Pay, and Kakao Games. The report suggests that the legal case may be prolonged and potentially decided by the Supreme Court, leading to several years of uncertain outcomes.

The analysis by Douglas Kim leans towards a bearish sentiment, indicating concerns about the potential consequences of the founder’s arrest on Kakao’s business operations and strategic decisions. The report also mentions possible scenarios such as Kakao Group selling partial stakes in Kakao Bank and SM Entertainment, but the process is expected to face delays, adding further uncertainty to the company’s future trajectory.

A look at Kakao Corp Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Investors looking at Kakao Corp for the long term may find a mix of signals in the Smartkarma Smart Scores. The company scores moderately in terms of value, indicating there may be solid fundamentals in place. However, the scores for dividend and growth are relatively lower, suggesting that income generation and expansion potential may be areas of consideration. On the positive side, Kakao Corp scores well in resilience, signaling the company’s ability to weather uncertain economic conditions. Momentum, on the other hand, is rated modestly, indicating a stable but not rapidly growing performance trend.

Kakao Corp, a provider of Internet portal services and a mobile messaging application, receives varying Smart Scores across different factors. While there are strengths in resilience, implying a robust business model, the company’s scores in growth and dividend may raise questions for investors seeking aggressive expansion or consistent income streams. Investors may find the company’s value score to be in a respectable range, balancing the overall outlook. Keeping in mind the mix of scores, potential investors may want to further evaluate Kakao Corp‘s strategic positioning and market dynamics to make informed investment decisions for the long term.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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