Why Did Webtoon Stock Rocket 31% Today?

JPMorgan said the firm’s latest agreement with Walt Disney represents a more substantial commitment between the two companies compared to their prior collaboration.

Webtoon Entertainment Inc. (WBTN) has secured a notable price target increase from two major firms after expanding its partnership with entertainment giant Walt Disney Co. (DIS). 

The new collaboration involves the creation of a digital comics platform, a move analysts view as a long-term growth catalyst for the company. JPMorgan revised its target price for Webtoon to $22, up from its prior estimate of $14, while maintaining a ‘Neutral’ rating, according to TheFly.

Webtoon Entertainment stock traded 31% higher on Tuesday morning. On Stocktwits, retail sentiment jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘extremely low’ levels in 24 hours. 

JPMorgan stated that the latest agreement represents a more substantial commitment between the two companies compared to their previous collaboration. While the deal may not immediately alter earnings projections, it is viewed as a strategically important move for Webtoon’s market position.

Meanwhile, Deutsche Bank also took a bullish stance, lifting its price target to $25 from $18 and reaffirming a ‘Buy’ rating. As part of the deal, Disney will acquire a 2% equity interest in Webtoon. The new digital platform will host comics from Disney's franchises, including "Marvel" and "Star Wars," as well as titles from 20th Century Studios.

Webtoon, which is controlled by South Korean internet giant Naver, listed on the Nasdaq in June 2024 and currently has a market cap of about $2 billion. The platform, also available as a mobile app, allows users to read, create, publish, and share graphic stories. 

Webtoon stock has gained over 39% in 2025 and over 70% in the last 12 months. 

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