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Upturn AI SWOT - About
NTES 
NetEase Inc (NTES)
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Upturn Advisory Summary
08/28/2025: NTES (1-star) is currently NOT-A-BUY. Pass it for now.
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 $152.18
1 Year Target Price $152.18
| 22 | Strong Buy |
| 7 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -27.95% | Avg. Invested days 34 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 87.17B USD | Price to earnings Ratio 18.53 | 1Y Target Price 152.18 |
Price to earnings Ratio 18.53 | 1Y Target Price 152.18 | ||
Volume (30-day avg) 31 | Beta 0.86 | 52 Weeks Range 73.86 - 140.85 | Updated Date 08/29/2025 |
52 Weeks Range 73.86 - 140.85 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 2.11% | Basic EPS (TTM) 7.43 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-08-14 | When - | Estimate 14.92 | Actual 14.81 |
Profitability
Profit Margin 31.19% | Operating Margin (TTM) 32.49% |
Management Effectiveness
Return on Assets (TTM) 11% | Return on Equity (TTM) 24.45% |
Valuation
Trailing PE 18.53 | Forward PE 15.97 | Enterprise Value 67349990641 | Price to Sales(TTM) 0.79 |
Enterprise Value 67349990641 | Price to Sales(TTM) 0.79 | ||
Enterprise Value to Revenue 4.39 | Enterprise Value to EBITDA 13.16 | Shares Outstanding 633198016 | Shares Floating 1706939553 |
Shares Outstanding 633198016 | Shares Floating 1706939553 | ||
Percent Insiders 1.4 | Percent Institutions 9.66 |
Upturn AI SWOT
NetEase Inc
Company Overview
History and Background
NetEase Inc. was founded in 1997 by William Ding. Initially a web portal, it evolved into a leading internet and online game service provider in China. It was one of the first Chinese companies to be listed on NASDAQ.
Core Business Areas
- Online Game Services: Develops and operates popular PC and mobile games, including licensed and self-developed titles.
- Youdao: Offers online learning services, including dictionaries, translation tools, and online courses.
- Cloud Music (NetEase Cloud Music): A music streaming platform with a strong focus on community and user-generated content.
- Innovative Businesses and Others: Includes NetEase CC Live, a live streaming platform, and Yanxuan, an e-commerce platform focusing on private label products.
Leadership and Structure
William Ding serves as the CEO and Chairman of the Board. The company has a hierarchical structure with various business units led by senior management.
Top Products and Market Share
Key Offerings
- Onmyoji: A popular mobile game developed by NetEase. Competitors include Tencent's Honor of Kings and Genshin Impact by miHoYo. No specific global market share available but it is considered a flagship title.
- Fantasy Westward Journey: A classic MMORPG that remains highly popular in China. Direct market share data unavailable but is a revenue driver for the company. Competitors include Perfect World and Giant Interactive.
- NetEase Cloud Music: A music streaming service. Competitors include Tencent Music (QQ Music, Kugou, Kuwo) and Spotify. Market share in China is estimated to be around 15-20%.
- Diablo Immortal: Co-developed with Blizzard Entertainment (now part of Microsoft), this mobile game is a key revenue generator. Competitors include other MMORPGs on mobile.
Market Dynamics
Industry Overview
The online gaming market is experiencing continuous growth, driven by mobile gaming, esports, and cloud gaming. The online education and music streaming markets are also expanding due to increasing internet penetration and demand for digital content.
Positioning
NetEase Inc. is a key player in China's internet industry, with a strong presence in online gaming and growing influence in education and music streaming. Its competitive advantages include a strong R&D capability, a large user base, and a diversified business portfolio.
Total Addressable Market (TAM)
The total addressable market across NetEase's core segments is estimated to be in the hundreds of billions of USD annually. NetEase is positioned to capture a significant portion of this market through its established brands and innovative offerings.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Diversified revenue streams
- Successful track record in game development
- Large and engaged user base
- Strong R&D capabilities
Weaknesses
- Heavy reliance on the Chinese market
- Regulatory risks in China
- Intense competition in all business segments
- Potential dependence on licensed games
Opportunities
- Expansion into international markets
- Growth in cloud gaming and esports
- Increasing demand for online education
- Development of new and innovative products
- Potential for strategic partnerships and acquisitions
Threats
- Changing consumer preferences
- Increased competition from domestic and international players
- Economic slowdown in China
- Unforeseen regulations in China
- Copyright infringement
Competitors and Market Share
Key Competitors
- TCEHY
- BILI
- HUYA
- PDD
Competitive Landscape
NetEase benefits from its strong brand and diversified business model. However, it faces intense competition from Tencent, which has a larger user base and a broader portfolio of products. Smaller companies like BILI and HUYA also pose competetive threats
Major Acquisitions
Quantic Dream
- Year: 2022
- Acquisition Price (USD millions): Unknown
- Strategic Rationale: To bolster its international game development capabilities and expand its portfolio of high-quality titles.
Growth Trajectory and Initiatives
Historical Growth: NetEase has experienced significant growth in revenue and profits, particularly in its online gaming segment. Recent initiatives in online education and music streaming have also contributed to growth.
Future Projections: Analyst estimates project continued growth for NetEase, driven by new game releases, expansion into new markets, and the increasing adoption of its online education and music streaming services. However these are subject to market risk.
Recent Initiatives: Recent initiatives include investing in new game development, expanding its online education platform, and promoting its music streaming service.
Summary
NetEase is a robust player in the Chinese internet market, boasting a solid gaming portfolio and growing segments in music and education. While their reliance on the Chinese market and its regulatory environment pose risks, their R&D and diversified streams strengthen their market position. The competition in all segments is very intense and must be constantly watched.
Peer Comparison
Sources and Disclaimers
Data Sources:
- NetEase Investor Relations
- Company SEC Filings (10-K, 10-Q)
- Industry Reports (e.g., Newzoo, Statista)
- Analyst Reports
- Public News Sources
Disclaimers:
The information provided is for informational purposes only and should not be considered as financial advice. Market conditions and company-specific factors may change over time. Consult a financial professional 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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