Kakao Stock Plunges 41% Since Start of Year, Analysts Cut Price Targets

According to Hankyung, Kakao's stock price fell 41% since the start of 2026 through July 7, sharply underperforming the KOSPI index which gained 81.68% over the same period. As of July 8 afternoon, the stock traded at 33,450 won, down 5.51% on the day, and has slid from its October 2025 peak of 69,700 won.

Securities firms including KB Securities, DB Securities, and Hana Investment Securities have lowered their price targets this month. Analysts note that while second-quarter earnings are expected to show 20.2% operating profit growth, stock recovery requires demonstrable progress in Kakao's AI agent business, beyond conventional ad revenue from KakaoTalk expansion. As KB Securities analyst Lee Ji-eun stated, meaningful user expansion and monetization proof for AI services are essential for a re-rating.