NetEase's Q1 Profit Rises on Higher Games Revenue

NetEase's (HKG:9999) attributable profit jumped 3.6% in the first quarter as revenue from games helped boost the Chinese internet company's top line.

Attributable profit rose to 10.7 billion yuan in the first quarter from 10.3 billion yuan a year earlier, according to a Thursday filing with the Hong Kong bourse.

Visible Alpha analysts, on average, expected the company to post 9.19 billion yuan in attributable profit for the quarter.

Earnings per share increased to 3.31 yuan from 3.21 yuan a year earlier.

Revenue increased 6.1% to 30.6 billion yuan from 28.8 billion yuan in the prior-year period.

Games and related value-added services revenue jumped 6.9% year over year to 25.7 billion yuan from 24.0 billion yuan on stellar performances from its self-developed games, Fantasy Westward Journey and Where Winds Meet.

NetEase also recognized high engagement and revenue across other titles such as Identity V, Eggy Party, and Sword of Justice.

"For the first quarter of 2026, we delivered another solid quarter across our established gaming portfolio, while continuing to make steady progress advancing our pipeline of new titles," CEO William Ding said.

New York-listed Youdao's revenue jumped 3.8% year over year to 1.35 billion yuan from 1.30 billion yuan, while its NetEase Cloud Music (HKG:9899) service saw revenue of 1.98 billion yuan, up 6.6% year over year from 1.86 billion yuan.

The top line from its innovative businesses segment slipped 4.6% to 1.55 billion yuan from 1.62 billion yuan

Directors approved a quarterly dividend of $0.144 per share, or $0.720 per American depositary share, payable June 15 to ordinary shareholders on record as of June 5 and on or around June 18 to ADS holders.

Arafura Rare Earths Directors Approve Construction of $1.6 Billion Rare Earths Project

Arafura Rare Earths (ASX:ARU) directors made a final investment decision for the Nolans Rare Earths Project in the Northern Territory, Australia.The decision marks the approval of the construction of the rare earths project, set to be Australia's first fully integrated ore-to-oxide rare earths operation, according to a Thursday disclosure to the Australian Securities Exchange.Arafura will then become Australia's third-largest rare earths producer after Lynas Rare Earths (ASX:LYC), the world's largest producer outside of China, and Iluka Resources (ASX:ILU), Reuters reported separately the same day.Arafura Rare Earths' $1.6 billion project will help deliver 4,440 metric tons of neodymium-praseodymium oxide.The project will supply 1,500 tonnes per annum to South Korea's Hyundai Motor( KRX:005380) and Kia (KRX:000270), equivalent to a 42% offtake.Germany's Siemens Gamesa will purchase 520 tonnes per annum, while Traxys in Europe and North America committed to an 800-tonne offtake.Arafura's decision comes after the Australian government committed AU$1.2 billion for its critical minerals strategic reserve, following confirmation from Canberra that the project will be eligible for the reserve, the Trade and Tourism Ministry said the same day.Export Finance Australia has issued a non-binding letter of support for an offtake of up to 500 tonnes per annum, which will be funded through the reserve.The company also signed investment deals with Germany and Australia for AU$230 million, while the Export-Import Bank of the United States is considering up to $300 million of financing support for the project.The project will create 600 construction jobs and 350 ongoing jobs upon the start of operations.Arafura's project comes as the U.S. is looking to reduce dependence on China for rare earths, the Wall Street Journal reported the same day."The world needs critical minerals, Australia has plenty of them, and we're helping workers and businesses make the most of this big opportunity," Treasurer Jim Chalmers said in a statement.

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Walmart Issues Weak Earnings Outlook Despite Fiscal First-Quarter Sales Beat

Walmart (WMT) issued a fiscal second-quarter earnings outlook below market estimates on Thursday, while the retail giant reported better-than-expected revenue in the previous three-month period.The company anticipates per-share adjusted earnings to be in a range of $0.72 to $0.74 for the ongoing quarter, while the current consensus on FactSet is for $0.75. The stock was down 2.2% in the most recent premarket activity.Sales are pegged to grow by 4% to 5% on a constant currency basis in the current quarter. The Street is looking for reported sales of $186.22 billion.For the quarter ended April 30, Walmart's total revenue, which includes membership and other income, improved 7.3% to $177.75 billion, topping the average analyst estimate of $174.84 billion. Adjusted EPS advanced to $0.66 from $0.61 in the prior-year period, in line with the Street's view."Our results reflect our continued focus on delivering across the enterprise," Chief Executive John Furner said in a statement. "It's a disciplined approach that's helping us grow the business and strengthen returns."US comparable sales excluding fuel inclined 4.1% buoyed by gains in transactions and average ticket, while e-commerce sales jumped 26%. Same-store sales in Sam's Club rose 3.9%, excluding fuel, amid higher transactions and unit volumes. Revenue in the company's international segment climbed 18% to $35.11 billion.For fiscal 2027, Walmart continues to project adjusted EPS to come in between $2.75 and $2.85 and sales to increase by 3.5% to 4.5% on a constant currency basis. The Street's current forecast is for non-GAAP EPS of $2.92 and reported sales of $749.05 billion.On Wednesday, Target (TGT) raised its full-year sales growth outlook on the back of higher-than-expected fiscal first-quarter results.

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Stocks Down Pre-Bell as Traders Monitor US-Iran Developments, Parse Nvidia Earnings

US equity markets were trending lower before the opening bell Thursday as traders monitor the latest developments in the US-Iran conflict and digest tech bellwether Nvidia's (NVDA) quarterly earnings.The S&P 500 fell 0.4% and the Dow Jones Industrial Average slipped 0.3% in premarket activity, while the Nasdaq was down 0.5%. The indexes finished the previous trading session higher, with the Nasdaq and S&P 500 snapping a three-day losing streak.Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Thursday that Tehran is reviewing the latest US proposal to end the war in the Middle East, CNBC reported, citing state-run agency Nour News.President Donald Trump told reporters on Wednesday that negotiations with Iran had reached the final stages, though he warned of further attacks if Tehran backs out, according to several media outlets. "We'll either have a deal or we're going to do some things that are a little bit nasty," Trump said, according to a Bloomberg News report. "But hopefully that won't happen."Earlier on Wednesday, Iran's Islamic Revolutionary Guard Corps reportedly said that it would retaliate beyond the Middle East if the US or Israel resumed their military attacks against the country.West Texas Intermediate crude oil slipped 0.2% to $98.01 a barrel before the open, while Brent decreased 0.6% to $104.42.Shares of Nvidia (NVDA) slipped 0.2% pre-bell after the chipmaking giant reported fiscal first-quarter revenue above Wall Street's estimates, as data center sales outperformed expectations amid an artificial intelligence boom. For the current quarter, Nvidia said it anticipates revenue of $91 billion, plus or minus 2%.Intuit's (INTU) stock dropped 14% after the financial technology platform reported better-than-expected fiscal third-quarter results and disclosed plans to reduce its workforce by about 17%. Urban Outfitters (URBN) declined 1.4% after its financial results.Federal Reserve officials flagged the possibility of higher interest rates if the Middle East conflict drags on and keeps inflation above the 2% goal, minutes from the central bank's April meeting showed on Wednesday.Meeting participants generally determined that elevated inflation, combined with uncertainty around the duration and impact of the Iran war, could justify holding rates for longer than previously anticipated. However, majority of Fed officials pointed out that "some policy firming would likely become appropriate if inflation were to continue to run persistently above 2%."Treasury yields were rising before the open, with the two-year rate gaining 6.6 basis points to 4.1% and the 10-year rate adding 5.1 basis points to 4.62%.Thursday's economic calendar has the housing starts and permits report for April at 8:30 am ET, along with the weekly jobless claims bulletin and the Philadelphia Fed manufacturing index for May. The S&P Global's (SPGI) flash purchasing managers' index for May is out at 9:45 am, followed by the Kansas City Fed manufacturing index for the same month at 11 am.Richmond Fed President Thomas Barkin is scheduled to speak at 12:20 pm.Walmart (WMT), Deere (DE), NetEase (NTES), Williams-Sonoma (WSM), Ralph Lauren (RL), Nio (NIO) and Advance Auto Parts (AAP) report their latest financial results before the bell, among others. Ross Stores (ROST), Take-Two Interactive Software (TTWO), Workday (WDAY), Zoom Communications (ZM) and Deckers Outdoor (DECK) release their earnings after the markets close.Gold was down 0.4% at $4,519 per troy ounce, while bitcoin fell 0.3% to $77,255.

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Arafura Rare Earths Directors Approve Construction of $1.6 Billion Rare Earths Project

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Stocks Down Pre-Bell as Traders Monitor US-Iran Developments, Parse Nvidia Earnings