Why NetEase Stock Plunged Today

Why NetEase Stock Plunged Today

Shares of Chinese internet and online-gaming company NetEase (NASDAQ: NTES) slumped on Thursday following a mixed second-quarter report. Revenue surged, but a profit shortfall and an analyst downgrade weighed on the stock. Shares of NetEase were down about 9% at 12:45 p.m. EDT.

NetEase reported second-quarter revenue of $2.0 billion, up 49.4% year over year. Online game services revenue soared 46.5% to $1.4 billion, while email, e-commerce, and other revenue rose 68.9% to $494 million.

Advertising revenue increased 12.1% to $87.9 million. CEO William Ding explained that online games are the company's biggest opportunity:

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Source: Fool.com