On August 11, NetEase fell 3.26% in pre-market trading, trading at $129.77/share, with turnover of $117,200. The company is scheduled to release its second-quarter and first-half unaudited results on August 20.
On the news front, Nomura previously issued a research note indicating that NetEase's Q2 adjusted profit may fall below market expectations, primarily due to investment losses generated from its holdings in Alibaba and Pinduoduo shares. Additionally, HSBC recently lowered its target price on NetEase from $162 to $150. As the earnings date approaches, market concerns over investment-side drag on profitability have intensified.
Separately, Everbright Securities maintained a Buy rating on NetEase, citing the launch of a new strong product cycle, effective cost-reduction strategies, and historically low valuations. Nomura expects online game and value-added services revenue to grow 6% year-over-year in Q2, driven by evergreen titles including Fantasy Westward Journey PC, Eggy Party, and Naraka: Bladepoint.
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