Webtoon Entertainment: Strong Flywheel Effect To Capture Demand

May Investing Ideas profile picture
May Investing Ideas
368 Followers
(9min)

Summary

  • I rate Webtoon Entertainment (WBTN) as a buy due to its strong flywheel effect and attractive valuation compared to peers.
  • WBTN's platform hosts 166.3 million MAUs and 7.8 million MPUs, with a significant portion from Korea, Japan, and globally.
  • The webtoon industry is expected to grow at a ~27% CAGR, driven by mobile platform ease and global manga influence.

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Investment overview

I give a buy rating for WEBTOON Entertainment (NASDAQ:WBTN) as the business has a strong flywheel effect that should only get better as it scales larger. This well positions WBTN to

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May Investing Ideas profile picture
368 Followers
I am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [historical charts analysis], and to some extend momentum investing [share price reaction post earnings etc.]. Over the years, I have used the positive aspects of each approach to hone my investing process. The reason to write on SeekingAlpha is to use this platform as a tracker for my investing ideas performance, and also to connect with like-minded investors that have the same investing interest.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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