NetEase Eases Lower Despite Continued Strong Sales Growth

High-growth companies inevitably face a point at which even strong business performance leads to falling growth rates. Investors in NetEase (NASDAQ: NTES) have been pleased with the video game giant's impressive gains in revenue and profit because of its leading position in the Chinese gaming market, but in the back of their minds, they've wondered just how long the company's boom can go on without interruption.

Coming into Wednesday's second-quarter financial report, NetEase investors wanted to see the same strong gains in key business fundamentals that they've come to take for granted in past quarters. NetEase's report had solid numbers in it, but a decrease in earnings growth was enough to spook some shareholders, sparking new concerns about the company's longer-term prospects. Let's take a closer look at NetEase to see whether its results have anything to say about its future.

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Source: Fool.com