Why Did NetEase Plunge 9.35% Ahead of Earnings?

On August 14, 2025, NetEase (NTES) experienced a significant drop of 9.35% in pre-market trading, setting the stage for a potentially volatile day ahead.

NetEase is scheduled to report its second-quarter earnings on August 14, 2025. Analysts have projected a 10.02% year-over-year increase in revenues, reaching $3.86 billion. This growth is anticipated to be driven by the company's strong performance in its online gaming and internet services sectors.

In addition to its earnings report, NetEase has recently enhanced its board independence by appointing a new director. This move is seen as a strategic step to strengthen corporate governance and align with best practices in the industry.

NetEase Cloud Music Inc., a subsidiary of NetEase, is also set to report its first-half 2025 financial results on the same day. This report will provide insights into the performance of NetEase's interactive music streaming services, which have been gaining traction in the Chinese market.