On August 24, NetEase fell 3.04% overnight, trading at $124.28/share with turnover of $270,600, as the post-earnings rebound failed to sustain momentum.

On the news front, NetEase reported Q2 results on August 20 showing net revenue of RMB 30.1 billion (up 7.9% YoY) and gaming revenue of RMB 25 billion (up 10% YoY), both exceeding expectations. However, net profit attributable to shareholders came in at only RMB 7 billion, down 18.6% YoY, primarily due to approximately RMB 2.95 billion in investment losses and the effective tax rate rising from 14.7% to 25.5%. Although multiple investment banks including Goldman Sachs, Citi, and Bank of America raised target prices and drove a 7%+ rebound on August 21, profit-side pressure continued to weigh on sentiment. Additionally, the broader Interactive Home Entertainment sector weakened, with peers such as Kingsoft declining 2.44% and XD Inc. falling 1.83%, amplifying the pullback through sector-wide selling.

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