NEW YORK (AP) ¿ The9 Ltd. was downgraded Thursday by an Oppenheimer analyst, who predicted several quarters of operating losses after the company lost its license to operate "World of Warcraft," the popular online video game. Oppenheimer analyst Paul Keung cut shares to "Perform" from "Outperform" and removed his $12 price target. Without another blockbuster game, head count reduction or a sale of assets, Keung said the Shanghai-based company could lose 92 cents per share over the next three quarters combined, leading to a net loss for the fiscal year of 59 cents per share. On average, analysts polled by Thomson Reuters project a profit of 79 cents per share. Keung said The9 is also "limited as to what it can offer a potential acquirer," reducing the chance of a buyout.
More from Technology
Apple Arcade Feels a Bit Like Streaming Services in Their Early Days
Apple's game-subscription service doesn't have many big-budget titles for now. But it's priced aggressively, has some quality titles and comes without ads or in-game purchases.
Dominion Energy to Build Largest Offshore Wind Project in U.S.
Dominion says the project off the Virginia coast will include more than 220 wind turbines and power up to 650,000 homes at peak.
Here's Why Apple's TV+ Could Be a Winner -- It's Playing the Long Game
Apple's aggressive $4.99 price point and one-year free trial mean that TV+ is virtually guaranteed to be in the streaming rotation for many cord-cutters in the short-term, and buys it time to iterate in the long term.
Square Shares Ease After KeyBanc Cuts Target, Affirms Stock at Overweight
New price target is still a 27% upside from the payment-tech company's Thursday closing price.
Google Investing $3.3 Billion in Data Centers in Europe
Google is investing 3 billion euros ($3.3 billion) to expand its data centers in Europe over the next two years and 'reskill the workforce for the new digital economy.'