1. What Happened?

Key Investment sold off its entire holding of 5,653,204 shares (11.97%) in Wisebirds through an after-hours block trade, creating significant selling pressure on the stock.

2. Why the Sell-Off?

While no official reason was given, potential factors include the expiration of the investment period, portfolio rebalancing, or concerns about Wisebirds’ growth prospects and future outlook. Despite revenue growth in Q1, Wisebirds reported declining operating profit and a net loss, which could have influenced Key Investment’s decision.

  • Q1 2025 Financial Highlights:
    • Revenue: KRW 8.46 billion (YoY +111.7%)
    • Operating Profit: KRW 640 million (Returned to profit, YoY decline)
    • Net Loss: KRW 690 million

3. What’s Next for Wisebirds?

Short-term downward pressure on the stock price is expected. However, the mid-to-long-term trajectory will depend on Wisebirds’ future performance and management strategy. If the company can improve profitability and successfully execute its new business initiatives, the stock price could recover.

4. What Should Investors Do?

Investors should avoid overreacting to short-term price fluctuations and carefully assess Wisebirds’ long-term growth potential. Closely monitoring the company’s efforts to improve fundamentals and management’s response to this event is crucial for making informed investment decisions.