NetEase Shares Plunge 10% on Q2 Revenue Miss, Gaming Weakness

Reuters08-22

NetEase Inc.'s shares plummeted by 9.87% in morning trading session, following the company's second-quarter earnings release. The Chinese gaming giant reported revenue of $3.51 billion for the quarter, missing analysts' expectations of $3.70 billion, despite beating earnings estimates.

The revenue disappointment stemmed primarily from the company's core gaming segment, which saw a 9.45% year-over-year decline in revenue from its PC games division. This decline was attributed to changes made to the virtual item trading platform of NetEase's popular PC game "Fantasy Westward Journey" in May 2024.

While NetEase's adjusted earnings per American Depositary Share (ADS) of $1.66 beat the consensus estimate of $1.65, the positive news was overshadowed by the weaker-than-expected revenue performance. The company's U.S.-listed shares slid around 5-6% in pre-market trading following the earnings release, setting the stage for the mid-day plunge.

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Comments

  • Dr Rck
    08-22
    Dr Rck
    Jobless claims rose so what does that mean? Job and economy has been slowing ever since but somehow it seems the market was in the pink of health, as claimed by many analysts. So no panic they said... but then many companies doing less better than most.. I hear a lot from main media that it would be a soft landing in 2025. If so, the cutting of interest rate a few times is to halt the impending slowdown of economy not felt yet at the moment but soon enough.. 
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