Our case for this company is that it is investing in the right businesses for both short term and long-term growth, with good business fundamentals. Naver’s investment in its content, cloud, and FinTech segments should provide near-term earnings visibility, while its commerce segment is expected to provide support for its long-term growth due to the shift to online services caused by the pandemic. Given the company runs a search platform, it should be able to study user patterns better to provide more personalised ads that would result in more paid clicks and conversion, which bodes well for the rest of its business segments.
South Korea’s leading internet platform offers multiple avenues into booming digital economy
Korea-listed Naver Corp is the global ICT company behind South Korea’s number one search portal, Naver, and its subsidiaries and affiliates provide services which include Line messenger, Snow camera app and metaverse platform Zepeto. Naver conducts R&D on artificial intelligence, robotics, autonomous driving, mobility, and other technology trends through its Naver Labs. In addition to operations in South Korea, the company has a presence in other Asian countries as well as in the US and France.
