Netease, Inc. shares fall over 10% pre-market after results, currently trading at $121.20.

Netease, Inc. shares fall over 10% pre-market after results, currently trading at $121.20.

NetEase, Inc. (NTES) experienced a significant drop in its stock price, declining by over 10% in the pre-market session following the release of its second-quarter 2025 unaudited financial results. As of the latest trading data, NTES shares are currently trading at $121.20.

The company reported a 9.4% increase in net revenues for the second quarter of 2025 compared to the same period in 2024, reaching RMB27.9 billion (US$3.9 billion). Games and related value-added services contributed significantly to this growth, with revenues increasing by 13.7% to RMB22.8 billion (US$3.2 billion). Despite these positive earnings, the stock's performance in the pre-market session indicates that the market's expectations were not fully met.

Key factors that may have contributed to the pre-market decline include:
- Revenue Growth: While the revenue growth was positive, it was lower than the 10% growth projected by analysts [1].
- EPS Growth: The EPS growth was 23%, but the stock's price action suggests that the market expected even stronger performance.
- Operating Expenses: Operating expenses decreased by 0.6%, which might have been seen as a positive sign, but the overall impact on earnings was not enough to offset market expectations.

The stock's pre-market decline also reflects broader market sentiments and sector-specific dynamics. NetEase's performance was juxtaposed against Electronic Arts (EA), which also reported earnings but declined by -0.26% intraday [1]. This divergence in performance underscores the competitive landscape within the interactive media and services sector.

Investors should closely monitor NTES's earnings call and any subsequent announcements to better understand the reasons behind the pre-market sell-off. Technical indicators suggest that the stock may find support at key levels, but the market's reaction to earnings news will be crucial in determining the stock's direction.

References:
[1] https://www.ainvest.com/news/ntes-surges-3-85-pre-market-earnings-anticipation-garp-allure-drive-momentum-2508/
[2] https://www.prnewswire.com/news-releases/netease-announces-second-quarter-2025-unaudited-financial-results-302529931.html