2 Chinese Internet Stocks Moving 5% in Opposite Directions After Earnings
E-Commerce China DangDang Inc. (NYSE:DANG) reported its results for the third quarter. Net income for the company was a loss of $11.5 million (15 cents per share). The company reported a profit of $5.2 million in the year-ago quarter. Revenue rose 50% $142.5 million.
“While our third quarter revenues growth rate is on the same path as previous quarters, our enlarged investment in marketing and fulfillment has strengthened our growth momentum as reflected in our revenue guidance for the fourth quarter,” said Ms. Peggy Yu Yu , Dangdang’s Executive Chairwoman.
Competitors to Watch: Amazon.com, Inc. (NASDAQ:AMZN), eBay Inc. (NASDAQ:EBAY), Mecox Lane Limited ADR (NASDAQ:MCOX),Youku.com (NYSE:YOKU), Baidu (NASDAQ:BIDU), Sina (NASDAQ:SINA), Liquidity Services, Inc. (NASDAQ:LQDT), Gaiam, Inc. (NASDAQ:GAIA), PC Connection, Inc. (NASDAQ:PCCC), PC Mall, Inc. (NASDAQ:MALL), Changyou.com (NASDAQ:CYOU), and Renren Inc (NYSE:RENN).
NetEase.com Inc. (NASDAQ:NTES) reported net income above Wall Street’s expectations for the third quarter. Net income for NetEase.com Inc. rose to $129.5 million (99 cents per share) vs. $87.5 million (70 cents per share) in the same quarter a year earlier. This marks a rise of 48% from the year earlier quarter. Revenue rose 50.4% to $314.8 million from the year earlier quarter. NTES beat the mean analyst estimate of 86 cents per share. It beat the average revenue estimate of $277.5 million.
“Open beta testing and successful promotional activities for Heroes of Tang Dynasty contributed to record revenue and user statistics for this game during the quarter, and we plan to release its first expansion pack in December. In conjunction with its ninth commercial anniversary on August 15, Westward Journey Online II continued to perform well during the quarter. In addition, we launched our latest expansion packs for Westward Journey Online III and Warsong of Westward Journey in August, and Fantasy Westward Journey in September. As a follow up to the success of Ghost’s unlimited closed beta testing, we launched its full scale closed beta testing in September, and reached record high PCU in October. To further extend our games pipeline and address the expanding web-based game market in China, we initiated closed beta testing for two new web-based games during the third quarter.”
Competitors to Watch: Sohu.com Inc. (NASDAQ:SOHU), Baidu.com, Inc. (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), Giant Interactive Group Inc (NYSE:GA), Perfect World Co., Ltd. (NASDAQ:PWRD), Shanda Interactive Entertainment Ltd ADR (NASDAQ:SNDA), The9 Limited (NASDAQ:NCTY), Shanda Games Limited (NASDAQ:GAME), DangDang Inc. (NYSE:DANG), and China Telecom Corp. Ltd. (NYSE:CHA).