DJ NetEase's 3Q Earnings May Be Weighed On by Rising Expenses, FX Losses -- Market Talk

0429 GMT - Chinese tech company NetEase's 3Q earnings could be weighed on by higher expenses and foreign-exchange losses, Nomura says. The bank cuts the target price of the stock to $541.00 from $554.00 as it expects marketing expenses to rise 26% on quarter for NetEase's online-gaming and music-streaming services. The value of the company's cash holdings, mostly denominated in dollars, could also be weighed by the rapid depreciation of the U.S. currency against the Chinese yuan, Nomura says. However, the bank maintains its buy rating as it expects NetEase's gaming segment to outperform in 4Q. The company's U.S.-listed shares last closed 0.4% higher at $472.14. (yiwei.wong@wsj.com)

(END) Dow Jones Newswires

September 28, 2020 00:32 ET (04:32 GMT)

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