'I bought Naver at the peak for 290,000 won' — investors cry foul as shares plunge after brief rally

"I bought at the peak for 290,000 won ($188). Don't invest in stocks the way I did — you'll go broke," one investor said.

Naver shares surged nearly 30 percent in just two days, briefly touching 300,000 won in a sharp V-shaped rebound, before collapsing again — leaving investors who bought near the top nursing heavy losses.

The initial rally was fueled by high-profile meetings between Nvidia CEO Jensen Huang and Naver Chairman Lee Hae-jin, which generated wide excitement. But the enthusiasm faded quickly, and the share price tumbled back into the 190,000-won range.

On Thursday, Naver's share price fell to 196,400 won, dropping as low as 190,000 won during trading to set a new 52-week low. Just weeks earlier, the stock had been surging — on June 9, it climbed to an intraday high of 308,500 won, a 52-week peak.

The sudden spike drew a wave of investors who rushed into Naver shares, and many now appear to be sitting on significant losses.

The rally was triggered by Huang's visit to South Korea, during which he met with Lee to discuss business cooperation. The two companies announced plans to jointly build global AI factories, with a focus on the Asian market.

As news of the partnership spread, Naver shares staged their V-shaped rebound and brokerages quickly raised their price targets. DS Investment Securities lifted its target from 300,000 won to 450,000 won, Shinyoung Securities raised its target from 320,000 won to 400,000 won, and KB Securities raised its target from 280,000 won to 330,000 won.

But investors who bought into the rally are now facing steep losses. One shareholder said Naver, which had been left behind during the broader bull market, appeared to be breaking out of its slump with the V-shaped rebound — only to fall even harder.

Naver had previously attracted wide enthusiasm, with some analysts suggesting the share price could rise tenfold to 1 million won. A Naver official said at the time that reaching a market capitalization of 150 trillion won ($108 billion) — implying a share price of 1 million won — was "not so much a goal as a reality to be achieved."

Despite the share price collapse, positive views on Naver are emerging, with a growing number of analysts arguing that the 190,000-won range represents a floor.

"Naver has secured the growth potential that was the core reason for its share price underperformance, through its partnership with Nvidia," one industry official said. "As global sales growth becomes a realistic prospect, the company's fundamentals could change."