Chinese online gaming giant NetEase
Revenues clocked in 38% higher to hit $72 million. The pros were only projecting the company to generate $68.4 million on the top line. The sound thumping isn't a surprise to long-term NetEase watchers. The company has beaten the market's prognosticators in seven of the last eight quarters.
The key driver remains the company's online gaming business. At one point, there were more than 1.3 million players taking on fantasy roles in the company's Fantasy Westward Journey Internet game. With coattails worth hopping on, the company commercially launched a new gaming experience -- Datang -- last month and has Tianxia II ready to roll out in open beta form later this year.
Keeping the pipeline flowing is critical as it is one of the things that tripped up rival Shanda Interactive
The rest of NetEase's business also grew during the period, with continued health in the company's popular Web portal and a refreshing recovery in its wireless entertainment services.
There are plenty of ways to play the stellar growth of the world's most populous nation. NetEase has proven to be one of the better options, as the stock has risen 45% higher since being pointed out to Motley Fool Rule Breakers newsletter service subscribers in the January 2005 issue. Shanda was also singled out at the time but has not performed as well. Oh, yes, that's another lesson that the NetEase professor can teach its fellow China stocks.
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Longtime Fool contributor Rick Munarriz has been a fan of China's high-margin gaming stocks for a long time. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. Rick does not own shares in any of the companies in this story. T he Fool has a disclosure policy.