[Edaily Reporter Hyera Lee ] On the 26th, Korea Investment & Securities downgraded its investment rating for SOOP(067160)from “Buy” to “Neutral,” citing a slowdown in the growth of the domestic live streaming market and a weakening growth trend in the platform business.

Jeong Ho-yoon, an analyst at Korea Investment & Securities, stated in a report released that day, “It has become difficult to be confident that the company will continue to grow in the domestic market,” adding, “We must take a conservative view until the performance of its overseas business is confirmed.”
Analyst Jeong assessed that the slowdown in the platform business division’s growth is becoming a reality. He explained, “The platform business division’s growth rate began to decline to single digits starting in 2025, and the decline accelerated due to the slowdown in the live streaming market itself, compounded by the impact of the discontinuation of in-app payments on Android smartphones last April.” He continued, “In the first quarter, the Platform Division’s growth rate fell to -12.8%,” analyzing that “this was the result of a combination of factors, including a decline in platform traffic and intensifying competition with rival platforms in certain categories.”
Researcher Jeong added, “Although in-app payments were reinstated on Android and iOS at the end of April, prices have been set higher than before due to the inclusion of platform fees, making it difficult to be optimistic about the impact.”
Another concern is the slowdown in ARPPU (Average Revenue Per Paying User) growth. Analyst Jeong noted, “Until now, SOOP’s earnings growth has been driven more by an increase in ARPPU—resulting from improved content planning by streamers and stronger bonds between streamers and fans—than by traffic growth,” but added, “We believe that, as the current monthly ARPPU has risen to the level of a hit MMORPG, it has reached a limit for further growth.”
Although the valuation is at a historically low level, the lack of growth visibility was seen as a bigger problem. Analyst Jeong said, “Based on projected 2026 earnings, the P/E ratio has fallen to 5.3x, but the results of the Southeast Asian business—which began in earnest last year—have not yet materialized,” adding, “A conservative approach is necessary until overseas performance is confirmed.”