Cost Pressures Hit NetEase's Bottom Line
For many up-and-coming companies, producing consistent revenue growth is the primary sign of success. When a company gets better established as a key player in its field, as Chinese video game giant NetEase (NASDAQ: NTES) has, turning that revenue into profit becomes at least as important to demonstrate its leadership in the industry.
Coming into the third-quarter financial report on Nov. 15, NetEase investors were ready to see further bottom-line pressure even as they anticipated another big jump in revenue. NetEase saw the expected boost to its sales, but a substantial jump in operating costs held back any potential profit gains. Let's look more closely at NetEase and what its latest results indicate about its prospects.
Image source: Getty Images.
Source: Fool.com
Netease Inc. ADR Stock
Netease Inc. ADR is currently one of the favorites of our community with 14 Buy predictions and no Sell predictions.
As a result the target price of 133 € shows a slightly positive potential of 19.82% compared to the current price of 111.0 € for Netease Inc. ADR.
