NetEase (NTES), one of China's leading Internet and online game services providers, had a bad start to fiscal 2014. NetEase’ results were upsetting. The Chinese gaming company posted weak results, disappointing expectations. However, management is citing this as seasonal weakness. The CEO, on the other hand, is expecting growth in the business. Let us find out what NetEase has in store for investors.
NetEase failed to impress investors with its results. The company’s quarterly revenue declined to $380.5 million from $392 million. However, management thinks that the weakness was due to weaker World of Warcraft contribution in the quarter. Taking this as a seasonal weakness, NetEase is feeling confident and sees better financials in the second quarter. But, the EPS downtrend in the past might hurt NetEase, and the company might even lose market share in the future. Continue Reading »