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Upturn AI SWOT - About
NTES 
NetEase Inc (NTES)
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Upturn Advisory Summary
04/01/2025: 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.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -29.68% | Avg. Invested days 33 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 66.33B USD | Price to earnings Ratio 16.28 | 1Y Target Price 121.88 |
Price to earnings Ratio 16.28 | 1Y Target Price 121.88 | ||
Volume (30-day avg) 1389262 | Beta 0.82 | 52 Weeks Range 75.47 - 110.15 | Updated Date 04/1/2025 |
52 Weeks Range 75.47 - 110.15 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 2.51% | Basic EPS (TTM) 6.32 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 28.2% | Operating Margin (TTM) 29.24% |
Management Effectiveness
Return on Assets (TTM) 9.68% | Return on Equity (TTM) 22.36% |
Valuation
Trailing PE 16.28 | Forward PE 13.21 | Enterprise Value 48189473399 | Price to Sales(TTM) 0.63 |
Enterprise Value 48189473399 | Price to Sales(TTM) 0.63 | ||
Enterprise Value to Revenue 3.32 | Enterprise Value to EBITDA 10.94 | Shares Outstanding 644494016 | Shares Floating 1727828412 |
Shares Outstanding 644494016 | Shares Floating 1727828412 | ||
Percent Insiders 1.38 | Percent Institutions 12.99 |
Analyst Ratings
Rating 4.66 | Target Price 113.73 | Buy 5 | Strong Buy 24 |
Buy 5 | Strong Buy 24 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
NetEase Inc
Company Overview
History and Background
NetEase Inc. was founded in 1997 by William Ding. Initially a provider of internet technology, it evolved into a leading online and mobile games developer, offering e-commerce, advertising, and other services. It's one of China's largest internet companies.
Core Business Areas
- Online Game Services: Develops and operates popular PC and mobile games, including licensed titles and self-developed games.
- Youdao: Offers online education services, including online courses, dictionaries, and translation tools.
- Cloud Music (NetEase Cloud Music): Operates a music streaming platform with a focus on user engagement and social features.
- Innovative Businesses and Others: Includes e-commerce platform Yanxuan, advertising, and other internet-related services.
Leadership and Structure
William Ding (also known as Ding Lei) is the CEO and a significant shareholder. The company operates with a traditional corporate structure, with various divisions responsible for different business segments.
Top Products and Market Share
Key Offerings
- Onmyoji: A popular mobile game with anime-style graphics and strategic gameplay. Competitors include Tencent's Honor of Kings and miHoYo's Genshin Impact. It has a large user base and contributes significantly to NetEase's game revenue. Specific market share data is not readily available, as it is bundled within the broader gaming segment financials. Estimated annual revenue of several hundred million USD.
- NetEase Cloud Music: A music streaming platform known for its curated playlists and user-generated content. Competitors include Tencent Music (QQ Music, Kugou, Kuwo) and other international streaming services. Market share data varies, but it holds a significant position in the Chinese music streaming market. Estimated to have over 181 million paying users as of Q3 2023.
- Youdao Dictionary: An online dictionary and translation app. Competitors include Baidu Translate and Google Translate. It has a large user base in China. Specific market share data is not readily available, but it is a leading dictionary app in China.
Market Dynamics
Industry Overview
The online gaming and entertainment industry is rapidly growing, driven by increasing internet penetration and mobile device usage. It is also heavily regulated in China. Online education is expanding as well.
Positioning
NetEase Inc. is a major player in the Chinese internet market, particularly in online gaming and music streaming. Its competitive advantages include its strong game development capabilities, innovative platform features, and large user base.
Total Addressable Market (TAM)
The TAM for online gaming and entertainment in China is estimated to be hundreds of billions of dollars. NetEase Inc. is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Strong game development capabilities
- Large user base
- Popular music streaming platform
- Successful online education services
- Solid financial performance
Weaknesses
- Reliance on the Chinese market
- Exposure to regulatory risks in China
- Competition from larger players like Tencent
- Difficulty expanding internationally
Opportunities
- Further expansion in mobile gaming
- Growth in online education
- International expansion
- Development of new technologies like AI
- Partnerships with other companies
Threats
- Increasing regulatory scrutiny in China
- Intense competition in the gaming and entertainment industries
- Changing consumer preferences
- Economic slowdown
- Geopolitical risks
Competitors and Market Share
Key Competitors
- TCEHY
- BIDU
- BILI
Competitive Landscape
NetEase Inc. faces intense competition from larger players like Tencent, but it has carved out a niche with its high-quality games, innovative platform features, and strong brand recognition.
Major Acquisitions
Quantic Dream
- Year: 2022
- Acquisition Price (USD millions): Undisclosed
- Strategic Rationale: To expand NetEase's game development capabilities and global presence. Quantic Dream is a well known global video game company.
Growth Trajectory and Initiatives
Historical Growth: NetEase Inc. has experienced strong growth in recent years, driven by its successful gaming and music streaming businesses. Growth has been impacted by regulation and pandemic events.
Future Projections: Analyst estimates suggest continued growth for NetEase Inc., particularly in mobile gaming and online education. Depends on regulatory environment, international success, and competitive pressures.
Recent Initiatives: Recent initiatives include expansion into new markets, development of new games and features, and strategic partnerships.
Summary
NetEase is a strong company in the Chinese internet market, excelling in online gaming and music. Its strengths lie in game development and large user base. However, it faces regulatory risks and competition, needing to focus on international expansion and innovation to sustain growth. The company needs to especially watch out for the regulatory constraints from China.
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Sources and Disclaimers
Data Sources:
- Company Reports
- Industry Analysis Reports
- Financial News Outlets
- Analyst Estimates
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market conditions and company performance are subject to change.
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 - | Website https://netease.gcs-web.com |
Full time employees - | Website https://netease.gcs-web.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; Cloud Music; and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; Youdao Translation, a tool specifically designed to support translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, and Youdao Listening Pod; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver information such as news, sports events, technology, fashion trends, and online entertainment; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. 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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