Kiwoom Securities has recently appraised Kakao’s status in the competitive landscape of artificial intelligence (AI), acknowledging a potential increased risk of losing its edge in this domain. Despite maintaining a “buy” rating for Kakao, the firm adjusted their target stock price from 69,000 KRW to 56,000 KRW. The analysts detailed that for Kakao to escape a valuation seen as too low, it needs to undergo a transformation into a more creative organization.
A certain level of concern was noted from the securities firm regarding Kakao’s strategic planning in AI across its TalkBiz and key business verticals. They observed a lack of significant visible change even after management replacements. According to Kiwoom’s researcher, the South Korean tech giant has demonstrated difficulty in actively creating and demonstrating substantial added value for its users.
Moreover, Kiwoom underlined the necessity for Kakao to swiftly leverage its user data to forge strategic partnerships with global tech giants. Failure to do so could lead to the dilution of Kakao’s data value over time and a cumulative increase in the probability of falling behind in AI prowess. Acknowledging Kakao’s focus on organizational management, Kiwoom’s stance is that internet business essentially requires a flexible structure that breeds creativity and new services.
Kiwoom Securities emphasized that if Kakao continues to focus on obtaining results from existing services, it might face valuation pressure in the medium to long term. Even though short-term improvements in performance could be achieved by leveraging user traffic for advertising and commerce, meaningful value elevation for the company is contingent on meeting the aforementioned conditions.
The article outlines the perspective of Kiwoom Securities on Kakao’s position in the AI market and their future outlook on the company’s competitiveness in this space. Some key questions, challenges, and controversies relevant to this topic include:
Key Questions:
1. What specific areas of AI is Kakao active in, and how do these align with current and future market demands?
2. Which global tech giants could Kakoo strategically partner with to enhance its AI capabilities and market reach?
Key Challenges:
– Staying ahead in the rapidly evolving AI industry requires continuous innovation and significant investment in research and development.
– Forming strategic partnerships with global tech players can be complicated due to differing corporate cultures, objectives, and concerns about data privacy and security.
Controversies:
– There may be concerns about user privacy and how Kakao handles user data, especially when forging partnerships that require data sharing.
Advantages:
– Kakao has a vast user base and a solid foundational infrastructure that can be leveraged for AI development and deployment.
– South Korea’s advanced technological landscape provides a conducive environment for AI research and innovation.
Disadvantages:
– Heavy reliance on existing service structures might hinder the flexibility needed for innovation.
– Competition from other global tech giants who may have more resources and established AI capabilities is significant.
For those interested in delving deeper into Kakao’s business endeavors and its position within the broader tech industry, you can visit Kakao’s official website via this link. Please note that the information regarding the strategic direction, partnerships, and AI initiatives would be subject to the latest updates from the company itself.
The source of the article is from the blog combopop.com.br