NTES changes
Pick any two versions below to diff them.
- Price
- $127.11 → $122.98(−3.2%)
- Discount
- 25% to 44% → 28% to 46%(+3.0 pts)
- Next earnings
- 2026-11-19 → 2026-11-20
- Thesis
- The market prices NetEase with a China discount and doubts about how long its games can grow. Chinese regulators approve new games and can limit play time and spending, and tension between the United States and China adds a risk to US-listed Chinese companies. Investors also fear that NetEase depends on old franchises and on a small number of new hits, while research and development costs rise. In Q2 2026, games revenue rose 9.7%, but it fell from Q1 2026, and net income fell to RMB7.0 billion from RMB8.6 billion a year earlier because of investment losses and a higher tax rate. NetEase has net cash of RMB167.5 billion, a dividend and a US$5.0 billion buyback program, but the market gives little value to this cash. For the gap to narrow, games revenue must keep growing, new titles such as Sea of Remnants, Ananta and Blood Message must succeed, and international revenue from games such as Where Winds Meet and Marvel Rivals must grow. The Q3 2026 report in about late November 2026 and, the global launch dates of Ananta on January 15, 2027, and a launch date for Blood Message give the next evidence. Because the China discount depends on regulation and politics, which NetEase cannot control, the gap will probably not close fully.
- Checkpoints
- Nov 1920, 2026 (estimate): Q3 2026 results: games growth and new titles. Pending. Watch: Games revenue growth near 10% year over year with a good start for Sea of Remnants passes; a fall in games revenue or more investment losses fail. Jan 15, 2027: Ananta global launch. Pending. Watch: A launch on time with strong early player numbers and spending passes; a delay or a weak start fails. Mar 2027 (estimate): Q4 2026 results and new game launches. Pending. Watch: Growth in international games revenue, a good first quarter for Ananta and a firm launch datesdate for Ananta and Blood Message pass; delays or weak new titles fail.
- Recent events
- 2026-10-08: NetEase Cloud Music announced a strategic partnership with gamma. to bring music from artists such as Mariah Carey, Usher and Snoop Dogg to its platform in China. 2026-08-25: NetEase and the developer Naked Rain said at Gamescom that Ananta will launch worldwide on January 15, 2027, on PC, PlayStation 5 and mobile. 2026-08-20: NetEase reported Q2 2026 results. Net revenue rose 7.9% to RMB30.1 billion, and games revenue rose 9.7% to RMB25.0 billion. Gross profit rose 17.5%, but net income attributable to shareholders fell to RMB7.0 billion from RMB8.6 billion because of investment losses, impairments and a 25.5% tax rate. NetEase declared a dividend of US$0.480 per ADS and bought back US$324.1 million of ADSs in the first half of 2026. NetEase said that Sea of Remnants launched in China in July 2026. 2026-06-30: NetEase became a dual-primary listed company on the Hong Kong Stock Exchange. The Exchange had found that 55% or more of the trading in its shares took place in Hong Kong in 2025. 2026-05-21: NetEase reported Q1 2026 results. Net revenue rose 6.1% to RMB30.6 billion, games revenue rose 6.9% to RMB25.7 billion, and net income attributable to shareholders was RMB10.7 billion. It declared a dividend of US$0.720 per ADS.