Has this South Korean gaming developer ever looked cheaper? Nope.

This week's stock is...

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MyWallSt Analyst Team
January 23, 2024

Charging & Fearless is the only newsletter that delivers under-the-radar, global stock picks before they make front-page news. We traverse borders to uncover the explosive potential of international companies beyond the scope of Wall Street analysts. Enjoy the 5-minute pitch on this week’s stock below...

Gravity

Gravity is a South Korean video game company best known for developing the massively multiplayer online role-playing game (MMORPG) “Ragnarok Online”. Founded in April 2000, it has become a global player in the online gaming industry, with a focus on developing and publishing high-quality, engaging titles for a worldwide audience.

These figures were converted from KRW to USD at the current rate of KRW1 = $0.00076

This is Gravity’s stock chart on the Nasdaq Stock Exchange.

Primed to Grow

Massively multiplayer online role-playing games, or MMORPGs for short, have enjoyed immense popularity in South Korea for over two decades. These games have captivated players with expansive virtual worlds, engaging gameplay mechanics, and opportunities for social interaction. South Korea is home to some of the most successful MMORPGs of all time, in particular Gravity’s Ragnarok Online, which was released in 2002 and quickly gained popularity for its charming art style, diverse classes, and engaging gameplay. It remains one of the most popular MMORPGs in South Korea and continues to attract new players. The business has also published Dragonica, Ragnarok Online II, and Ragnarok Prequel II, which form the backbone of its PC gaming portfolio. In addition to PC games, Gravity has expanded into mobile gaming with its Ragnarok franchise.

The MMORPG market in South Korea is expected to continue to grow in the coming years, driven by the increasing popularity of mobile gaming and the demand for immersive and engaging gaming experiences. Globally, the market is expected to reach USD 42.22 billion by 2029, growing at a CAGR of 10.75% during the forecast period from 2024 to 2029. 

Gravity is a leading developer in the space.

In Their Own Words

For a game developer and publisher, Gravity’s Investor Relations site is somewhat lacking, which is why we’ve plotted their Revenue Growth and Return on Equity instead.

What Could Go Wrong?

Hundreds of other game publishers are working night and day to steal audiences. Ragnarok remains Gravity's most popular and profitable franchise, and the company's financial performance is heavily reliant on the success of this IP. If its popularity declines or the company fails to successfully launch new titles, its revenue and profitability will suffer significantly.

Final Word

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