Chinese Gaming and Multimedia Gaming – TradingView News

Summary

• NetEase (NTES) has shown a strong technical performance with a 29.61% increase since the Trend Seeker buy signal on September 26 and is above the key moving averages.
• The company operates in various segments, including online gaming, music streaming and intelligent learning services, with a market capitalization of $65.06 billion and a P/E ratio of 15.25.
• Wall Street analysts are bullish, issuing 26 strong buy ratings, with price targets ranging from $83 to $161 and a consensus of $117.
• Despite its volatility, NetEase is viewed by MorningStar as undervalued and is expected to benefit from an improving regulatory environment and future game releases.

Chart of the Day belongs to Chinese electronics gaming and multimedia company NetEase NDE . I found the stock by using Barchart's powerful screening features to find stocks with the highest technical buy signals, highest weighted alpha, superior current momentum, and a trend finder buy signal. I then used the flipchart function to check the charts for a consistent price increase. Since the trend Seeker on September 26th. signaled a buy, the stock rose 29.61%.

NetEase, Inc. operates in online gaming, music streaming, intelligent online learning services and Internet content services in China and internationally. The company is active in the areas of games and related value-added services. Youdao; cloud music; and the Innovative Companies and Other segments. It develops and operates PC and mobile games and 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 the translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Children's 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 solutions to digitize education, such as the Youdao Smart Learning Terminal, a device that automates the processing of paper-based homework; Youdao Smart Cloud, a cloud-based platform that enables third-party app developers, smart device brands and manufacturers to use the company's OCR capabilities; and Youdao Sports, a sports-oriented education system. Its products and services include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform that sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which provides 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 focused on broadcasting games; and NetEase Pay, a payment platform. The company was formerly called NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, People's Republic of China.

Barchart's opinion trading systems are listed below. Please note that Barchart Opinion indicators are updated live every 20 minutes during the session and therefore may change throughout the day as the market fluctuates. The indicator numbers shown below may therefore not match what you see live on the Barchart.com website when you read this report.

Bar chart technical indicators:

• 8% technical sell signals
• 7.88+ weighted alpha
• 4.58% increase last year
• .55 – 60 month betas
• Trend finder buy signal
• Above the 20, 50 and 100 day moving averages
• 9 new highs and an increase of 29.61% in the last month
• Relative Strength Index 81.88%
• Technical support level at $94.06
• Recently traded at $104.20, with a 50-day moving average of $85.94

Basic factors:

• Market cap $65.06 billion
• P/E ratio 15.25
• Dividend yield 2.07%
• Wall Street analysts expect sales to rise 5.00% this year and another 8.70% next year
• Yields are estimated to rise 0.80% this year, another 10.00% next year, and continue to rise at an annual rate of 0.87% over the next five years

Analyst and investor sentiment – I don't buy stocks because everyone else is buying, but I realize that it's difficult to go against the tide when big companies and investors dump a stock:

• Wall Street analysts issued 26 “strong buy,” 4 “buy,” and 3 “hold” opinions on the stock
• Analysts' price targets ranged from $83 to $161; the consensus was $117
• CFRA's MarketScope rates the stock a 4-star Buy with a price target of $110 and comments: “We are positive on NTES due to its strong positioning in mobile gaming and music streaming. We see an improvement in the regulatory environment ahead following significant pressure from Youdao and its GVAS segment in 2022.”
• MorningStar gives the stock an above-average rating of 5 stars with a fair value of $158, or 38% undervalued, and comments: “NetEase's commitment and patience in developing next-generation games will pay off significantly over time . We expect the upcoming release of Where Winds Meet to be a commercial success and a significant growth driver in 2025 and beyond.”
• 31,640 investors are watching the stock on Seeking Alpha

Additional Disclosure: The Bar Chart of the Day highlights stocks that are currently experiencing exceptional price increases. They do not constitute a buy recommendation as these stocks are extremely volatile and speculative. Should you decide to add any of these stocks to your investment portfolio, it is strongly recommended that you maintain a predetermined diversification and sliding stop loss discipline consistent with your personal investment risk tolerance and reevaluate your stop losses at least weekly.

At the time of publication, Jim Van Meerten did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see Barchart's disclosure policy here.