The author is an analyst for NH Investment & Securities. He can be reached at jaemin.ahn@nhqv.com -- Ed.
Three years of corrections have sent Internet share prices down to the 2019 levels, with Internet companies suffering slowed earnings growth amid a languid expansion of their webtoon, fintech, and mobility businesses.
Against this backdrop, we forecast a rebound of the Internet/game sector in 2024, backed by the development of concrete AI business models. Earnings growth should also recover, centering on commerce. If the economy rebounds in 2H24, Internet firms’ ad and commerce earnings should strengthen further. Having realized the need for platform expansion and genre diversification, game companies are working to transform themselves. Prospects are now rising for a return of growth stocks.