Why NetEase's Dip Is an Opportunity in Disguise

Shares of NetEase (NASDAQ: NTES) are down about 12% since the company reported terrific second-quarter results on Aug. 9. The Chinese video gaming giant easily surpassed Wall Street's expectations on both revenue and earnings, but its shares fell as part of a broader decline in Chinese stocks.

But investors shouldn't get bothered by the post-earnings stock price drop. NetEase's latest quarterly report shows that it is pulling the right strings to tap the massive opportunity in the Chinese mobile gaming market, while also harboring international ambitions. Additionally, the company has built a strong pipeline of new games that should act as long-term catalysts.

Here are some of the key takeaways from NetEase's second-quarter report that show why it is built for growth.

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Source: Fool.com