NetEase’s parabolic rise may finally be over.
NetEase, which has gained more than 10,000% off its 2002 lows, plunged 15% after hours Tuesday after missing revenue estimates. Sohu , Sina.com
and China.com
fell in sympathy.
NetEase blamed the shortfall on competition in wireless services and on wireless carriers that have restricted the company’s pay-per-service approach. CEO Ted Sun said new free offerings the company has set up in response will result in a larger, more loyal user base.
With revenues growing 97% year-over-year and 7.4% sequentially, NetEase is still a strong growth story, just one that got ahead of itself. The risk for the broader market is that investors could come to the same conclusion about the rest of the market.
Also after the close, NetIQ , MicroStrategy
and LookSmart
warned. Genesis Microchip
raised guidance, and Monster Worldwide
, Maxim
and RealNetworks
met estimates.
Stocks soared during the day after the Federal Reserve said it plans to leave interest rates low for the foreseeable future.
The Nasdaq soared 49 to 1932, the S&P 500 surged 15 to 1046, and the Dow rose 140 to 9748. Volume surged to 1.62 billion shares on the NYSE, and 2.1 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 22-9 on the Nasdaq. Upside volume was 75% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 307-9 on the NYSE, and 294-6 on the Nasdaq.
Taiwan Semi soared 11% after beating estimates, powering the chip sector.
China.com , Sina.com
, Macrovision
and Adeptic
rose on their results, while Netegrity
, Neoware
and FreeMarkets
fell.
Sony rose on massive layoffs.
Palm climbed 6% after shareholders approved its merger with Handspring
.
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