, Columnist
Tencent’s Gaming Troubles Were Foretold by Its Nearest Rival
NetEase had already flagged bureaucratic struggles.
Playing the regulator requires expert-level skills.
Photographer: Yu Chun Christopher Wong/S3studio/Getty Images
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Shares in Chinese game company NetEase Inc. plummeted by 11 percent in Nasdaq trading on Aug. 9.
Having just reported a 22 percent rise in second-quarter revenue — in line with estimates — along with net income that beat by 15 percent, analysts were suddenly bearish about the second half of the year. Price targets were cut, downgrades were delivered.