The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0811 GMT – NetEase’s 3Q results are unlikely to live up to street expectations, which look overly bullish to Nomura, but should show strong solid revenue growth. Analyst Jialong Shi sees revenue up 8% on year, led by a 25% rise for mobile gaming thanks to blockbuster title “Justice” and newcomer “Dunk City Dynasty.” Online game and value-added services revenue is tipped to grow 12%, with PC gaming the weak point, down 16% mainly on the deconsolidation of games licensed from Blizzard, Shi says. Market focus will be on “Justice,” as its performance will affect NetEase’s gaming outlook in the next quarters. Nomura will also track the launch schedule for two new titles. It raises 2023-2024 EPS views by 1% each and lifts its buy-rated NetEase ADR target 2.4% to $128. (fabiana.negrinochoa@wsj.com)
Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8