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
Netease Inc. ADR Stock
Netease Inc. ADR is currently one of the favorites of our community with 11 Buy predictions and no Sell predictions.
As a result the target price of 119 € shows a positive potential of 28.65% compared to the current price of 92.5 € for Netease Inc. ADR.
