slumped 3% Monday after the Chinese Internet and online gaming-service provider posted a rise in second-quarter profit.
Net income was $39.3 million, or 28 cents per American depositary share, up from the year-ago $30 million, or 21 cents a share. Revenue jumped 43% to $72 million. Analysts were expecting a profit of 27 cents a share on sales of $68.4 million, according to Thomson Financial.
"We experienced another quarter of solid revenue growth across all business lines," says Chief Executive William Ding in a statement. He added that "improved content channels and new services for Internet users continued to widen our audience, which attracted more spending from advertisers."
But shares of NetEase fell in late action. Going into Monday's report, shares were up 33% this year -- outperforming many big-cap Internet names including
U.S. investors have high hopes for Chinese Internet stocks, since demand for the Web continues to rise across the globe. This optimism has been tested lately by disappointing earnings reports from some China-based Internet companies such as