Can NetEase Stock Keep Going After Last Week's 21% Pop?
One of last week's biggest winners was NetEase (NASDAQ: NTES), moving 21.3% higher after posting its third-quarter results on Thursday afternoon. Analysts issued largely positive updates on the Chinese online gaming and portal darling following the fresh financials, though CLSA did buck the trend by downgrading the shares.
It was a strong quarter for NetEase. Revenue rose 36% to $1.88 billion. A 24% increase in its online gaming revenue -- the key driver at 65% of NetEase's total top-line results -- got a lift from headier growth from the rest of its advertising, email, e-commerce, and other online businesses. Revenue was roughly in line with the $1.89 billion that analysts were targeting. Adjusted earnings growth was flat, as a spike in its e-commerce initiatives also generated a surge in related operating expenses. However, that profit also met Wall Street expectations.
Image source: NetEase.
Source: Fool.com