NetEase (NTES) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Does NetEase (NTES) have what it takes to be a top stock pick for momentum investors? Let's find out.
NetEase delivered strong 1Q25 results, beating revenue and earnings expectations on robust growth in original PC and mobile games. Despite long-term bullishness, we downgrade NTES to 'Hold' as the recent rally has priced in much of the future growth potential. NTES's differentiated focus on original IP and promising game pipeline positions it well for global expansion and sustained industry leadership.
U.S.-listed shares of NetEase (NTES) surged nearly 15% in intraday trading Thursday as the Chinese internet and game services provider reported first-quarter results above analysts' estimates.
NetEase, Inc. (NASDAQ:NTES ) Q1 2025 Earnings Conference Call May 15, 2025 8:00 AM ET Company Participants Helen Wu - Investor Relations Bill Pang - Vice President, Corporate Development William Ding - Chief Executive Officer Conference Call Participants Miranda Zhuang - Bank of America Lincoln Kong - Goldman Sachs Felix Liu - UBS Yang Liu - Morgan Stanley Ritchie Sun - HSBC Thomas Chong - Jefferies Xueqing Zhang - CICC International Corporation Alicia Yap - Citigroup Operator Good day, and welcome to the NetEase First Quarter 2025 Earnings Conference Call. Today's conference is being recorded.
The Chinese videogame giant delivered solid first-quarter results as its core online business continued to recover, in another sign that China's gaming industry has bounced back.
NetEase's stock has surged due to China's tech recovery, favorable regulations, and strong earnings, but it now trades at elevated price multiples with potential downside risk. The company excels in developing proprietary AAA content, with gaming generating 79% of revenue and non-gaming segments contributing a significant 20%. NetEase boasts strong financials, including a high cash-to-debt ratio, robust free cash flow, and impressive shareholder rewards through dividends and share buybacks.
NetEase: Undervalued Gaming Giant With Global Potential
NetEase, Inc. (NASDAQ:NTES ) Q4 2024 Earnings Conference Call February 20, 2025 7:00 AM ET Company Participants Brandi Piacente - Investor Relations Bill Pang - Vice President, Corporate Development William Ding - Chief Executive Officer Conference Call Participants Yang Bai - CICC Yang Liu - Morgan Stanley Ritchie Sun - HSBC Alicia Yap - Citigroup. Lincoln Kong - Goldman Sachs Felix Liu - UBS Operator Good day and welcome to the NetEase 2024 Fourth Quarter and Fiscal Year 2024 Earnings Conference Call.
Chinese game companies may be forced to sell off their overseas holdings in U.S. game companies. That could cause an earthquake in gaming.
A Seattle-based team that contributed to development on the popular online action game Marvel Rivals has reportedly been dismissed by its parent company.
Investors focused on top-and-bottom-line performance—important as they are—do so at the risk of neglecting another crucial metric for companies across industries: cash flow. Put simply, without adequate cash flow, it becomes difficult for any company to sustain its operations, let alone continue to grow its business through expansion, innovation, or acquisitions.