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Naver hit by investment burden, Kakao aided by cost stability as Q3 outlook diverges

Naver and Kakao are expected to post divergent third-quarter results. Naver is forecast to log double-digit revenue growth but a drop in operating profit due to heavier spending on AI infrastructure, commerce and marketing. Kakao is seen posting a slight revenue decline but a double-digit rise in operating profit on relatively stable costs. Analysts say investors will focus on whether each company can translate AI initiatives into concrete products, contracts and revenue.