Is NetEase Worth $2 billion?

Chinese portal NetEase, shares of which have jumped 471 percent this year, said late Tuesday that sales from e-commerce and SMS 21 percent from the prior quarter to $7.6 million.

NetEase said sales grew 97 percent to $17.7 million. It also earned $10.2 million, or 30 cents a share, reversing a loss of $1.1 million last year.

NetEase blamed competition and the termination of the company’s contracts with third-party content providers for the weakness in SMS.

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