0812 GMT - NetEase's earnings growth looks set to slow this year, dragged by the weak performance of the newly launched "Condor Hero" game and declining revenue from another title, "Fantasy Westward Journey", HSBC Global Research analysts say. The company's PC gamer user activity dropped 6% on year in 1Q, which may be dragged further by lower income from "Fantasy Westward Journey", they add. The return of Blizzard's games to China in 2H via a deal with NetEase may partially offset that impact. HSBC expects NetEase's total and game revenue to rise 3% each on year for 1Q. They keep a buy rating on the stock but cut the target to $126.00 from $130.00. ADRs closed at $94.02. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
April 25, 2024 04:14 ET (08:14 GMT)
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