WEBTOON Entertainment (NASDAQ:WBTN) Rating Lowered to Hold at HSBC

WEBTOON Entertainment (NASDAQ:WBTN) was downgraded by HSBC from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, Marketbeat Ratings reports. They presently have a $11.50 price objective on the stock. HSBC’s price objective indicates a potential upside of 10.79% from the stock’s current price.

A number of other equities research analysts also recently issued reports on WBTN. Evercore lowered their price target on shares of WEBTOON Entertainment from $23.00 to $20.00 and set an “outperform” rating on the stock in a report on Thursday, November 13th. Weiss Ratings reissued a “sell (d-)” rating on shares of WEBTOON Entertainment in a report on Wednesday, January 21st. Wall Street Zen cut shares of WEBTOON Entertainment from a “hold” rating to a “sell” rating in a report on Monday. Zacks Research cut WEBTOON Entertainment from a “strong-buy” rating to a “hold” rating in a research report on Thursday, November 20th. Finally, UBS Group cut WEBTOON Entertainment from a “buy” rating to a “neutral” rating in a report on Friday, November 14th. Three equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $15.07.

WEBTOON Entertainment Trading Down 0.6%

Shares of WBTN stock opened at $10.38 on Wednesday. WEBTOON Entertainment has a 12 month low of $6.75 and a 12 month high of $22.47. The stock has a market capitalization of $1.36 billion, a P/E ratio of -3.92 and a beta of 1.94. The firm’s 50 day moving average is $12.22 and its 200 day moving average is $14.57.

WEBTOON Entertainment (NASDAQ:WBTN) last posted its earnings results on Tuesday, March 3rd. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). WEBTOON Entertainment had a positive return on equity of 1.36% and a negative net margin of 24.94%.The company had revenue of $330.69 million for the quarter, compared to analysts’ expectations of $336.77 million. During the same quarter in the prior year, the company earned ($0.03) EPS. The company’s revenue was down 6.3% on a year-over-year basis. On average, equities analysts predict that WEBTOON Entertainment will post -0.26 EPS for the current year.

Institutional Trading of WEBTOON Entertainment

Several hedge funds and other institutional investors have recently bought and sold shares of WBTN. Los Angeles Capital Management LLC purchased a new stake in WEBTOON Entertainment during the second quarter valued at about $189,000. SG Americas Securities LLC lifted its stake in shares of WEBTOON Entertainment by 60.8% in the 2nd quarter. SG Americas Securities LLC now owns 97,890 shares of the company’s stock valued at $889,000 after acquiring an additional 37,004 shares during the last quarter. CWM LLC boosted its holdings in WEBTOON Entertainment by 649.0% during the 2nd quarter. CWM LLC now owns 4,674 shares of the company’s stock valued at $42,000 after acquiring an additional 4,050 shares during the period. Walleye Capital LLC grew its position in WEBTOON Entertainment by 84.4% during the 2nd quarter. Walleye Capital LLC now owns 117,263 shares of the company’s stock worth $1,065,000 after acquiring an additional 53,669 shares during the last quarter. Finally, Creative Planning increased its stake in WEBTOON Entertainment by 127.4% in the 2nd quarter. Creative Planning now owns 66,806 shares of the company’s stock worth $607,000 after purchasing an additional 37,422 shares during the period.

WEBTOON Entertainment News Roundup

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.

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.