On August 26, NetEase fell 3.06% in pre-market trading, trading at $124.86/share, with turnover of $118,300, as the prior two-day rebound failed to sustain momentum.
On the news front, NetEase released its Q2 earnings on August 20, reporting net revenue of RMB 30.1 billion and gaming revenue of RMB 25 billion, both exceeding expectations. However, net profit attributable to shareholders came in at only RMB 7 billion, down 18.6% year-over-year, primarily due to approximately RMB 2.95 billion in investment losses from equity holdings such as Pinduoduo marked to market, along with the effective tax rate surging from 14.7% to 25.5%. Adjusted EPS of RMB 12.02 per ADS significantly missed the consensus estimate of RMB 15.59. Despite Goldman Sachs, Bank of America, Citi, and Daiwa collectively raising target prices while maintaining buy ratings, and the confirmed inclusion in the Hang Seng Stock Connect China Enterprises Index effective September 14 having previously driven a 7%-plus rebound, profit-side pressure continues to weigh on sentiment as post-earnings bull-bear contention intensifies.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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