Giant Interactive (NYSE:GA) was a giant disappointment as well, reporting a 25% decline in first-quarter profits. Giant Interactive (NYSE:GA) failed to assure investors things were on the right track when it reported that the company is spending more on R&D, but its customers are spending less. Average revenue per user plunged 27% during the quarter.
Perfect World (Nasdaq:PWRD) may be the most perfect of this trio as the company reported a 42% jump in quarterly profits. The company's profit of 84 cents a share was inline with analysts' estimates, but revenue missed slightly. Perfect World (Nasdaq:PWRD) shares did catch a bid, for one day at least, on the news because the company said it is seeing increased demand for its games, a statement its rivals were not able to make.
Overall, investors seem unimpressed by the reports as shares of Perfect World (Nasdaq:PWRD), Giant Interactive (NYSE:GA) and Netease.com (Nasdaq:NTES) are down 25%, 5% and 10% in the past week, respectively.
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