NetEase, Inc.
- Open
- 122.99
- Day high
- 123.30
- Day low
- 121.61
- Prev close
- 122.76
- Volume
- 394K
- Mkt cap
- $77.7B
- P/E (TTM)
- 16.2
- EPS (TTM)
- $7.54
- P/B
- 3.1
- P/S
- 4.5
- Yield
- 2.01%
- Per share
- $2.44
- ▼Insiders net selling -$1.3M over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
NetEase, Inc. (NTES) is a Technology company listed on NASDAQ. The stock is down 10% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 2 published research articles covering NTES.
NetEase, Inc. (NTES) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NTES earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 20, 2026 | $2.29 | $1.77 | -22.8% | $4.4B | +2.4% |
| May 21, 2026 | $2.21 | $2.53 | +14.6% | $4.4B | +4.3% |
| Feb 11, 2026 | $2.02 | $1.57 | -22.4% | $3.9B | -9.0% |
| Nov 20, 2025 | $2.07 | $2.07 | +0.0% | $4.0B | -1.1% |
| Aug 14, 2025 | $2.03 | $2.07 | +1.9% | $3.9B | -1.7% |
| May 15, 2025 | $2.00 | $2.41 | +20.4% | $4.0B | -0.5% |
| Mar 6, 2025 | $1.73 | $1.42 | -17.8% | $3.7B | — |
| Nov 14, 2024 | $1.75 | $1.44 | -17.5% | $3.7B | -4.3% |
| Aug 22, 2024 | $1.80 | $1.66 | -7.9% | $3.5B | -2.7% |
| May 23, 2024 | $1.86 | $1.81 | -2.7% | $3.7B | +1.6% |
| Feb 29, 2024 | $1.79 | $1.60 | -10.6% | $3.8B | -1.2% |
| Nov 16, 2023 | $1.66 | $1.82 | +9.6% | $3.7B | +0.1% |
NTES insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 13, 2026 | Mo Binofficer: Vice President, Finance | Grant | 716 | — |
| Jun 30, 2026 | Boltz Paul William JRofficer: General Counsel | Sell | 10,000 | $128.30 |
Source: NTES SEC Form 4 filings, latest Aug 13, 2026. For informational purposes only — not investment advice.
See the full NTES insider & 13F page →NTES research & analysis
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NetEase, Inc. company profile
Overview
NetEase, Inc. (NASDAQ:NTES) is a Chinese technology conglomerate founded in 1997 by William Ding and headquartered in Hangzhou, China. Originally established as an internet portal company, NetEase has evolved into one of China's largest gaming and internet services companies. The company went public on NASDAQ in 2000 and has since diversified its business across multiple segments including online gaming, music streaming, educational technology, and e-commerce. Today, NetEase stands as a major player in China's digital entertainment ecosystem, with a strong focus on gaming innovation and global expansion.
Business
NetEase operates as a diversified internet technology company with four primary business segments. The company's core business revolves around online gaming development and publishing, which generates approximately 80% of total revenue. NetEase creates and operates both PC and mobile games across various genres including massively multiplayer online role-playing games (MMORPGs), battle royale games, party games, and sports simulations. Popular titles include Fantasy Westward Journey, Identity V, NARUKA: BLADEPOINT, Eggy Party, and Marvel Rivals. The Youdao segment represents NetEase's educational technology division, contributing roughly 5% of revenue. Youdao offers online learning services, smart educational devices like the Youdao Dictionary Pen, AI-powered translation tools, and digital learning platforms. This segment focuses on language learning, K-12 education, and professional development courses. NetEase Cloud Music operates as China's leading music streaming platform, accounting for approximately 8% of revenue. The platform provides music streaming services, supports independent artists, and has built an ecosystem around music discovery and social interaction. It competes directly with platforms like QQ Music and offers both free and premium subscription tiers. The Innovative Businesses segment encompasses various other ventures including Yanxuan (a private-label e-commerce platform), NetEase Mail (email services), news portals, live streaming platforms, and payment services. This segment contributes around 7% of total revenue and serves as NetEase's experimental ground for new digital services and products.
Revenue model
NetEase generates revenue through multiple monetization models across its business segments. The gaming division primarily operates on a freemium model where games are free-to-play but generate revenue through in-game purchases, virtual items, battle passes, and cosmetic upgrades. Mobile games account for approximately 73% of gaming revenue, with players purchasing character upgrades, special abilities, and aesthetic enhancements. The company also earns licensing fees from publishing third-party games and receives revenue sharing from platform partnerships. The Youdao education segment employs a subscription and product sales model. Revenue comes from online course subscriptions, sales of smart learning devices, and licensing of AI-powered educational tools to institutions. NetEase Cloud Music operates on a freemium subscription model with additional revenue from advertising, live streaming gifts, and music licensing fees. Several factors influence NetEase's profit margins. Positive margin drivers include the scalability of digital products, strong intellectual property portfolios, and increasing adoption of AI technologies that reduce development costs. The company benefits from China's large gaming market and growing demand for digital entertainment. Negative margin pressures come from intense competition in gaming markets, rising user acquisition costs, regulatory changes in China's gaming industry, and the need for continuous content investment to maintain player engagement. Currency fluctuations also impact international revenue, while increasing investment in global expansion and AI development creates near-term cost pressures.
Competitive moat
NetEase possesses a moderate competitive moat built primarily around its gaming expertise and established user communities. The company's strongest defensive position comes from its proven ability to create long-lasting game franchises, with titles like Fantasy Westward Journey maintaining popularity for over two decades. This demonstrates NetEase's deep understanding of player psychology and game mechanics, which is difficult for competitors to replicate quickly. The company benefits from network effects in its gaming ecosystem, where established player communities create switching costs and viral growth. NetEase's integrated approach across gaming, music, and education also creates some cross-selling opportunities and user stickiness. Additionally, the company's strong balance sheet and cash generation capability provide resources for continuous game development and strategic acquisitions. However, NetEase's moat faces significant challenges. The gaming industry is highly competitive with low barriers to entry for new titles, and player preferences can shift rapidly. The company competes against global giants like Tencent domestically and faces international competition from companies like Electronic Arts, Activision Blizzard, and mobile gaming specialists. Regulatory risks in China's gaming market pose ongoing threats, as government policies can significantly impact revenue and operations. The rise of AI-powered game development tools may also level the playing field, potentially reducing NetEase's technological advantages over smaller competitors.
Risks & safety
NetEase demonstrates a strong margin of safety with solid financial fundamentals and conservative capital structure. • Liquidity and Solvency: Strong cash position of RMB 50+ billion, current ratio of 3.1x, minimal debt-to-equity ratio of 0.09x, and consistent positive free cash flow generation of RMB 5+ billion annually • Valuation Metrics: Trading at reasonable P/E ratio of 11.9x, EV/EBITDA of 12.2x, and P/B ratio of 3.0x, suggesting modest valuation relative to growth prospects • Other Considerations: Consistent profitability with 21% ROE, diversified revenue streams reducing single-point-of-failure risk, though exposure to Chinese regulatory environment and gaming industry cyclicality present ongoing risks
Recent development
Over the past few years, NetEase has pursued an aggressive global expansion strategy by establishing overseas game development studios in North America, Europe, and Japan. The company has shifted its R&D resource allocation from 80% domestic/20% international to a more balanced 40-60% split, aiming to create games with global appeal rather than China-specific content. The company has made significant investments in artificial intelligence integration across its gaming operations. AI technologies now handle up to 90% of labor-intensive development tasks, allowing creative teams to focus on game design and innovation. NetEase has also launched AI-powered educational tools like the Confucius-o1 learning model through its Youdao division. Strategic partnerships have become increasingly important, particularly the renewed collaboration with Blizzard Entertainment to bring World of Warcraft and other Blizzard titles back to the Chinese market. NetEase has also secured licensing deals with major entertainment brands including Marvel for games like Marvel Rivals and Marvel Snap. The company has diversified its gaming portfolio significantly, expanding beyond traditional MMORPGs into battle royale games, party games, sports simulations, and survival games. Recent successful launches include Marvel Rivals, Where Winds Meet, and the continued growth of Eggy Party, which has achieved over 40 million daily active users.
NTES company profile · for informational purposes only — not investment advice.
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