NetEase is trading $129.00, up 7.67%, after investors reassessed its August 20 earnings and focused on stronger revenue.
- Adjusted earnings missed estimates because of investment losses and higher taxes, while revenue reached $4.4 billion and beat expectations; core gaming revenue grew 9.7% year over year and gross margins improved.
- Shares rebounded from the August 20 close of $119.81 after the earnings-driven decline; investors appeared to view the shortfall as largely non-operating.
- Goldman Sachs raised its price target to $168 and maintained a Conviction Buy rating.