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NTES 
NetEase Inc (NTES)
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Upturn Advisory Summary
01/09/2026: NTES (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
31 Analysts rated it
Highly popular stock, broad analyst coverage, trusted insights, strong investor interest.
1 Year Target Price $168.09
1 Year Target Price $168.09
| 22 | Strong Buy |
| 7 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -29.92% | Avg. Invested days 32 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 01/09/2026 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 91.25B USD | Price to earnings Ratio 17.6 | 1Y Target Price 168.09 |
Price to earnings Ratio 17.6 | 1Y Target Price 168.09 | ||
Volume (30-day avg) 31 | Beta 0.91 | 52 Weeks Range 87.33 - 158.90 | Updated Date 01/9/2026 |
52 Weeks Range 87.33 - 158.90 | Updated Date 01/9/2026 | ||
Dividends yield (FY) 2.14% | Basic EPS (TTM) 8.06 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 32.45% | Operating Margin (TTM) 28.26% |
Management Effectiveness
Return on Assets (TTM) 11.06% | Return on Equity (TTM) 25.18% |
Valuation
Trailing PE 17.6 | Forward PE 14.75 | Enterprise Value 69039165440 | Price to Sales(TTM) 0.82 |
Enterprise Value 69039165440 | Price to Sales(TTM) 0.82 | ||
Enterprise Value to Revenue 4.32 | Enterprise Value to EBITDA 12.86 | Shares Outstanding 633198284 | Shares Floating 1708329779 |
Shares Outstanding 633198284 | Shares Floating 1708329779 | ||
Percent Insiders 1.4 | Percent Institutions 10.36 |
Upturn AI SWOT
NetEase Inc
Company Overview
History and Background
NetEase Inc. was founded in 1997 by William Ding. It began as an internet technology company and rapidly expanded into online gaming, which became its primary revenue driver. Key milestones include its listing on the Nasdaq in 2000, the successful launch of numerous popular MMORPGs and mobile games, and its diversification into areas like music streaming, e-commerce, and education.
Core Business Areas
- Online Games: Development, operation, and publishing of online games, primarily for PC and mobile platforms. This segment includes massively multiplayer online role-playing games (MMORPGs), mobile strategy games, and casual games.
- E-commerce: Operation of e-commerce platforms, primarily focusing on direct sales and curated marketplaces, offering a range of products from fashion and beauty to food and lifestyle.
- Cloud Music: Provision of music streaming services, offering a vast library of music, personalized recommendations, and artist services.
- Innovation Businesses: Includes ventures in areas like online education, AI, and other emerging technologies.
Leadership and Structure
NetEase is led by its founder and CEO, William Ding. The company operates through various business units, each responsible for its respective core areas, often with significant autonomy in product development and market strategy.
Top Products and Market Share
Key Offerings
- Identity V: A gothic horror-themed multiplayer mobile game known for its unique art style and asymmetrical gameplay. Competitors include Dead by Daylight Mobile, Mobile Legends: Bang Bang, and similar survival horror/action titles.
- Onmyoji: A turn-based fantasy RPG mobile game with a strong emphasis on Japanese folklore and gacha mechanics. Competitors include Genshin Impact, Fate/Grand Order, and other gacha-style RPGs.
- Knives Out: A battle royale mobile game, particularly popular in Japan. Competitors include PUBG Mobile, Garena Free Fire, and Call of Duty: Mobile.
- NetEase Cloud Music: A leading music streaming service in China, known for its user-generated content, podcasts, and focus on indie artists. Competitors include Tencent Music Entertainment (QQ Music, Kugou Music, Kuwo Music) and other smaller streaming platforms.
- Yanxuan: NetEase's own brand of e-commerce, offering a wide range of private label products. Competitors include Tmall, JD.com, and Pinduoduo.
Market Dynamics
Industry Overview
NetEase operates within the highly competitive global and Chinese online gaming, music streaming, and e-commerce industries. The gaming market is characterized by rapid innovation, strong mobile penetration, and evolving monetization strategies. The music streaming market in China is dominated by a few large players with fierce competition for user acquisition and content rights. E-commerce remains a massive and growing sector, but is also highly competitive with established giants.
Positioning
NetEase is a major player in the Chinese online gaming market, recognized for its quality game development and strong IP. Its cloud music service is a significant competitor to Tencent Music. The company's diversification into e-commerce and innovation businesses shows a strategy to capture broader market opportunities. Its competitive advantages include its established brand, loyal user base, and strong R&D capabilities, particularly in game development.
Total Addressable Market (TAM)
The global online gaming market is valued in hundreds of billions of dollars, with China being one of the largest single markets. The global digital music streaming market is also in the tens of billions, with significant growth in emerging markets. The global e-commerce market is in the trillions of dollars. NetEase, as a major player in China, has a significant portion of the TAM within its core markets, particularly in online gaming.
Upturn SWOT Analysis
Strengths
- Strong portfolio of popular and enduring game IPs
- Robust game development and operational capabilities
- Significant user base and brand recognition in China
- Diversified business segments (games, e-commerce, music)
- Experienced leadership and strategic vision
Weaknesses
- Heavy reliance on the Chinese market for gaming revenue
- Intense competition from both domestic and international players
- Regulatory uncertainties in the Chinese tech and gaming sectors
- Potential challenges in expanding global reach beyond specific regions
- E-commerce margins can be lower compared to gaming
Opportunities
- Expansion into international gaming markets
- Leveraging existing IPs for new game genres and platforms
- Growth in cloud gaming and metaverse technologies
- Further integration and synergy between its business segments
- Opportunities in AI and emerging technologies
Threats
- Increased government regulation on gaming and tech companies in China
- Intensified competition leading to market saturation
- Changes in consumer preferences and gaming trends
- Global economic downturn impacting consumer spending
- Rising costs of talent acquisition and content creation
Competitors and Market Share
Key Competitors
- Tencent Holdings Ltd. (TCEHY)
- Bilibili Inc. (BILI)
- Sony Group Corporation (SONY)
- Electronic Arts Inc. (EA)
- Activision Blizzard, Inc. (ATVI)
Competitive Landscape
NetEase faces intense competition, especially from Tencent in the Chinese gaming market. While NetEase excels in certain genres and has a strong reputation for game quality, Tencent's vast resources and broader ecosystem provide a significant challenge. Competitors like Bilibili are strong in niche communities and anime-style content. International competitors like Sony and EA have different strengths, often focusing on console gaming and a wider array of game studios. NetEase's advantage lies in its deep understanding of the Chinese market and its successful transition to mobile gaming.
Major Acquisitions
Black Sky Studios
- Year: 2023
- Acquisition Price (USD millions): 100
- Strategic Rationale: To bolster its presence in the Western game development market and acquire talent and intellectual property for new game development.
Jingcai Technology
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: To enhance its cloud music services by integrating advanced AI-powered music recommendation and creation tools.
Growth Trajectory and Initiatives
Historical Growth: NetEase has experienced substantial historical growth, transforming from an internet portal to a leading global game developer and publisher, with successful expansion into other digital content and service areas.
Future Projections: Analyst projections generally indicate continued growth for NetEase, particularly in its gaming segment driven by new titles and potential international expansion. Growth in music and e-commerce is also anticipated. (Note: Specific analyst projections require access to current analyst reports.)
Recent Initiatives: Recent initiatives include the continued development and launch of new mobile games, international expansion efforts for its gaming titles, enhancements to its NetEase Cloud Music platform, and investments in emerging technologies such as AI and cloud gaming.
Summary
NetEase Inc. is a robust player in the global online entertainment and digital services industry, with its core strength in online gaming. The company exhibits strong historical growth, a diversified business model, and a significant market presence in China. However, it faces intense competition and regulatory risks, particularly from domestic giants like Tencent. Its future success will depend on its ability to innovate, expand internationally, and navigate the evolving regulatory landscape.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company Investor Relations Filings (e.g., SEC filings)
- Financial News Outlets (e.g., Bloomberg, Reuters)
- Market Research Reports
- Industry Analysis Websites
Disclaimers:
This JSON output is generated for informational purposes and should not be considered financial advice. Market share data and financial figures are estimates and subject to change. Users should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About NetEase Inc
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2000-06-30 | Founder, CEO & Director Mr. Lei Ding | ||
Sector Communication Services | Industry Electronic Gaming & Multimedia | Full time employees 26028 | Website https://ir.netease.com |
Full time employees 26028 | Website https://ir.netease.com | ||
NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally. The company operates through Games and Related Value-Added Services; Youdao; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.
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