This has been a pretty volatile time to invest in China's leading online-gaming providers. Regulators are cracking down on game content and foreign ownership. Recent IPOs have not gone over too well.
There is also a wider disparity in terms of performance. Changyou.com
As in most quarters, Shanda Interactive
Nope. Shanda's net revenue soared 48% to $202.5 million. Earnings climbed 29% to $0.90 a share, just ahead of Wall Street's $0.88-a-share target. Profitability rose a healthy 49% on a non-GAAP basis.
It certainly could have been worse. Shanda is the same company that decided to take its Shanda Games
The sector's uncertainty has been weighing on the publicly traded players. The stocks currently trade for just 10 to 14 times next year's projected earnings. Regulators have already tripped up NetEase by delaying its release of Activision Blizzard's
Either way, the lesson here is to stick with the winners in an industry that's no longer rewarding all comers. Shanda, for now, is worthy of a victory lap.
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