Webtoon Entertainment Stock Skyrockets: Here’s Why It Almost Doubled in a Single Day

Webtoon Entertainment just pulled off a stunner—shares surged nearly 100% in today's trading session. Here's the breakdown.

The catalyst? A perfect storm.

Market buzz suggests a combo of breakout earnings, a surprise partnership, or maybe just traders finally waking up to the fact that digital comics print money. (Unlike some meme stocks we won’t name.)

Short squeeze or sustainable?

While the bulls are dancing, skeptics whisper ‘pump.’ But with Webtoon’s IP moat and Gen Z’s insatiable appetite for bite-sized storytelling, this could be more than just a one-day wonder.

The bottom line:

Another reminder that in today’s market, ‘fundamentals’ are just one emoji away from being disrupted. Time to update those spreadsheets—or just YOLO.

Webtoon's results and a sweet Disney deal

Let's start with the financial filings. The average Wall Street firm had expected second-quarter earnings of roughly $0.02 per share, with top-line revenue NEAR $341 million. The mobile webcomics specialist posted adjusted earnings of $0.07 per share instead, based on $348 million of revenues. That's a clean sweep, also exceeding the top end of management's guidance ranges for this period.

But the bigger news came from the House of Mouse. Besides the earnings report, Webtoon also announced a brand new Disney deal. This contract adds a selection of Disney, Marvel, 20th Century Fox, and Star Wars content on the Webtoon platform.

It will start with a handful of free webcomics at launch, followed by approximately 100 pieces of premium content over time. That's a robust slice of Disney's instantly recognizable content portfolio, but Webtoon users won't get full access to this DEEP well.

Image source: Getty Images.

How the partnership helps Webtoon and Disney

Webtoon CEO David Lee wasn't able to share financial terms or launch dates quite yet, as the commercial details are still being hammered out. But he called the deal a win-win for both companies. Webtoon will supplement its mainly anime-style comics with a deep well of proven hits, while Disney reaches the Gen Z kids (and younger) from a new angle.

The stock calmed down to an 85% gain by noon ET. That's still a solid 52-week high. Again, the Disney deal holds more weight than a modest earnings surprise. From here, Webtoon needs to make the most of its Disney contract, boosting the company's fairly slow revenue growth and nearly breakeven profits.