WEBTOON Entertainment Inc. (WBTN) stock surged 5.13% in the 24-hour period, continuing its impressive rally following the announcement of a major partnership with Walt Disney. This collaboration will bring iconic characters from Marvel, Star Wars, and other Disney properties to WEBTOON's mobile vertical-scroll format.

The partnership, revealed on Tuesday, involves integrating over 100 Disney-branded adapted comics into an exclusive section of WEBTOON's English-language app. Additionally, both companies will work together to create original webcomics featuring beloved characters such as Spider-Man and Luke Skywalker. This strategic move is seen as a significant win for WEBTOON, allowing it to supplement its anime-style comic resources with a rich catalog of popular content while helping Disney reach younger, mobile-native audiences.

The stock's surge was further bolstered by WEBTOON's strong second-quarter earnings report, which exceeded analyst expectations. The company reported adjusted earnings per share of $0.07 and revenue of $348 million, surpassing Wall Street estimates. Looking ahead, WEBTOON expects third-quarter revenue between $380 million and $390 million, indicating continued growth. While the stock has seen a remarkable recovery, it's worth noting that it still trades below its initial public offering price of $21 from last year, suggesting potential for further gains as the company capitalizes on this high-profile partnership and its improving financial performance.