Why Did NetEase Plunge 9.31% Despite Earnings Beat?

On April 7, 2025, NetEase, Inc. (NTES) experienced a significant drop of 9.31% 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 company's growth prospects and operational efficiency.

Additionally, recent trading activities involving NetEase shares have further contributed to the stock's volatility. Institutional investors, such as Pitcairn Co., have adjusted their holdings in the company, with Pitcairn Co. acquiring 3,082 shares. These transactions, while not directly impacting the stock price, have added to the overall market sentiment surrounding NetEase.