1. What Happened with Naver’s Q2 Earnings?

Naver reported Q2 2025 revenue of ₩17.054 trillion, significantly missing the estimated ₩29.023 trillion. Operating profit came in at ₩4.903 trillion, 7% below expectations, while net profit reached ₩4.539 trillion, slightly exceeding the forecast by 6%.

2. Why the Earnings Miss?

The drastic revenue decline is attributed to a combination of factors. A global economic slowdown, the advertising market’s off-season, increased competition, and weaknesses in specific business segments likely contributed to the poor performance. The 38.8% decrease in revenue compared to Q1 is alarming and requires thorough investigation.

3. So, What Should Naver Investors Do Now?

While short-term downward pressure on the stock price is expected, Naver’s core strengths in search and commerce platforms remain solid. Investors should also pay attention to future growth drivers like AI, fintech, and content. However, careful monitoring of the company’s ability to address the revenue decline and the concrete results of its growth strategies is crucial. A long-term perspective on the company’s value is essential for making informed investment decisions.

4. Key Checkpoints for Investors

  • Analysis of the causes of the revenue decline and proposed solutions
  • Performance of future growth drivers: AI, fintech, and content
  • Changes in the macroeconomic environment, including interest rates, exchange rates, and global economic conditions