NetEase Plunges 9.97% as Sales Miss Expectations

On April 7, 2025, NetEase, Inc. (NTES) experienced a significant drop of 9.97% in pre-market trading, reflecting investor concerns over the company's recent financial performance.

NetEase, a prominent Chinese video game publisher, reported better-than-expected earnings for the fourth quarter. However, the company's sales figures fell short of market expectations, leading to a decline in investor confidence. This discrepancy between earnings and sales performance has raised questions about the sustainability of NetEase's growth trajectory.

Recent trading activities involving NetEase shares have also contributed to the stock's volatility. Wellington Management Group LLP sold a substantial number of shares, while Pitcairn Co. acquired a smaller amount. These transactions suggest a mixed sentiment among institutional investors, with some opting to reduce their holdings while others see value in the stock.