On August 26, NetEase fell 3.14% in regular trading, trading at $124.75/share, with turnover of $5.76 million, as the prior two-day rebound failed to sustain.

On the news front, NetEase released its Q2 earnings on August 20. While net revenue of 30.1 billion yuan and gaming revenue of 25 billion yuan both exceeded expectations, with operating profit surging 33% year-over-year, net profit attributable to shareholders came in at only 7 billion yuan, declining 18.6% year-over-year. The shortfall was primarily driven by approximately 2.95 billion yuan in investment losses — stemming from fair value declines in equity holdings including Pinduoduo — and the effective tax rate rising sharply from 14.7% to 25.5%.

Despite Goldman Sachs, Bank of America, Citi, and Daiwa collectively raising target prices while maintaining buy ratings, and the confirmed inclusion in the Hang Seng Stock Connect China Enterprises Index effective September 14, profit-side headwinds continue to fuel post-earnings bull-bear contention.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)