Why NetEase Shares Are Rising Today
Portfolio Pulse from Anusuya Lahiri
NetEase reported Q1 FY23 revenue growth of 6.3% YoY to $3.65 billion, beating consensus estimates. Games and related services revenues grew 7.6% YoY, while Youdao's revenue declined by 3.1%. The board approved a dividend of $0.4650 per ADS for Q1.
May 25, 2023 | 11:29 am
News sentiment analysis
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POSITIVE IMPACT
NetEase's Q1 FY23 revenue growth of 6.3% YoY to $3.65 billion beat estimates, with games revenue growing 7.6%. The board approved a dividend of $0.4650 per ADS for Q1.
NetEase's Q1 FY23 revenue growth and games revenue growth exceeded expectations, which is likely to have a positive impact on the stock price. The increased dividend also adds to the positive sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Youdao, Inc's Q1 FY23 revenue declined by 3.1% YoY to $169.4 million, with the corresponding gross margin decreasing by 140 bps to 51.7% due to reduced net revenues from learning services.
Youdao's Q1 FY23 revenue decline and decreased gross margin are likely to have a negative impact on the stock price, as they indicate reduced performance in the learning services segment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100