10 Best IPO Stocks To Buy Heading into 2025

6. Webtoon Entertainment Inc. (NASDAQ:WBTN)

Average Upside Potential: 105.72%

Number of Hedge Fund Holders: 23

Webtoon Entertainment Inc. (NASDAQ:WBTN) is a leading global digital comics platform that provides a vast library of web comics, ranging from original works to licensed adaptations of popular stories. Its platform is accessible on various devices, including smartphones, tablets, and computers, and is known for its innovative storytelling format, combining high-quality visuals with engaging narratives.

The company made $320.97 million in revenue in Q2 2024 and its earnings per share were $0.20. Key growth drivers included 11.5% growth in paid content revenue and strong performance in advertising, particularly triple-digit growth in Japan. IP adaptation revenue also grew by 24.9%. Total revenue grew by 13.7% year-over-year in the first half of 2024.

Webtoon Entertainment Inc.’s (NASDAQ:WBTN) vast content library and global user base of 170 million monthly active users continue to fuel growth. However, the company faced some challenges during the quarter. The weaker foreign exchange environment, particularly the Korean won and Japanese yen negatively impacted reported revenue. Additionally, the delay in launching the AI-driven personalized recommendation model led to softer user dynamics in Korea.

Looking ahead, the company is focused on expanding its global footprint, particularly in Japan and other key markets. It also plans to increase marketing spend to drive user acquisition and retention, which may impact short-term profitability. While the company’s long-term growth prospects remain strong, it will need to navigate the challenging macroeconomic environment and execute effectively its strategic initiatives to deliver sustained growth.