This article only represents the author's own views.
When a company’s revenue falls, so does its stock price – most of the time. But that wasn’t the case this time for NetDragon Websoft Holdings Ltd. (0777.HK), whose interim results released last week show its revenue fell 13% during the six months through June, while its profit dropped 12%.
Despite that, the market shrugged off the negativity, giving the 24-year-old, Fuzhou-based company a pat on the back with a 9.3% jump in its share price the day after the results came out. Rather than focusing on the declines, investors seemed encouraged by the company’s strong post-pandemic gains for its gaming business. They also probably liked a robust plan for its other main business in education, where the company is seeking to expand its share at the lower end of the market for its educational devices.