After spending most of the past few years at a mediocre three-star ranking, Perfect World
Perfect World's recent earnings release and outlook for the coming quarter led many investors to check out of the stock, but some CAPS members were compelled by the dip in the share price to make a bullish call, betting that there's still plenty of growth left.
Its number of paying customers declined in the quarter, but the company was able to generate more average revenue per user, leading to a 47% jump in revenue. It was also able to bring much of that growth to the bottom line, which rose 42% over last year. Though Perfect World gave disappointing revenue guidance for the second quarter, some investors are encouraged that others in the Chinese online gaming sector still have momentum. Giant Interactive
While gaming growth in China has attracted U.S. companies, as in Activision Blizzard's
Do you think Perfect World deserves its improved status? Add your thoughts in the comments box below, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
The Motley Fool Rule Breakers service has been scouting Chinese online companies for years, looking for the next generation's big winners today. To see what rule-breaking stocks David Gardner is recommending now, take a free 30-day trial.
Fool contributor Dave Mock recently upgraded his favorite pencil with a new eraser tip. He doesn't own shares of companies mentioned here. NetEase, Perfect World, and Sohu are Rule Breakers picks. Activision and Electronic Arts are Stock Advisor recommendations. Motley Fool Options has recommended a synthetic long position on Activision Blizzard, and the Fool owns shares of the company. The Fool's disclosure policy had to back off on its amazing run in World of Warcraft for health reasons.