Why Did NetEase Shares Soar 7.22%? Q1 Earnings, Global Expansion Drive Surge

On May 15, 2025, NetEase (NTES) shares surged by 7.22% in pre-market trading, reflecting strong investor confidence in the company's recent financial performance and strategic initiatives.

NetEase reported a 7.4% year-over-year increase in Q1 2025 revenues, reaching RMB28.8 billion (US$4.0 billion). The company's gaming segment continued to drive growth, showcasing NetEase's strong position in the global gaming market. Additionally, the company's strategic global expansions have further solidified its market presence, contributing to the positive investor sentiment.

NetEase's financial results for the first quarter of 2025 were robust, with a gross profit of RMB18.5 billion (US$2.5 billion). This marks a significant improvement from the preceding quarter, indicating the company's effective cost management and operational efficiency. The strong financial performance has bolstered investor confidence, leading to the pre-market surge in NTES shares.