On August 24, NetEase fell 3.25% in pre-market trading, trading at $124.44/share with turnover of $83,200, as the post-earnings rebound failed to sustain momentum.

On the news front, NetEase reported Q2 earnings on August 20 showing net revenue of 30.1 billion yuan (up 7.9% YoY) and gaming revenue of 25 billion yuan (up 10%), both exceeding expectations. However, net profit attributable to shareholders was only 7 billion yuan, down 18.6% YoY, primarily due to approximately 2.95 billion yuan in investment losses from equity fair value declines and impairment charges, compared to net investment gains of 330 million yuan in the year-ago period. The effective tax rate also surged from 14.7% to 25.5%. Adjusted EPS per ADS came in at 12.02 yuan, significantly below the market consensus of 15.59 yuan.

Although multiple investment banks including Goldman Sachs and Bank of America raised target prices following the earnings release, driving a brief 7%+ rebound, profit-side pressure has continued to weigh on sentiment. The broader Interactive Home Entertainment sector also traded weaker, amplifying downside pressure through sector-wide correlation.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)