NetEase stock: buy or sell?

NTES stock price: $320.96 4.58% At close on March 31st, 2020

Updated on:
March 31st, 2020

2

Shares of NetEase boosted an extraordinary 4.58% and closed at $320.96. On March/24 NTES skyrocketed an astounding 7.73%. On Friday NTES plummed a frightening -5.51%.

NetEase, Inc. operates an interactive online community in the People's Republic of China. The company operates through Online Game Services; Advertising Services; and E-mail, E-commerce and Others segments.

Should I buy NetEase stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, NetEase stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is NetEase stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't find any rating for NTES stock for the last 30 days.

NetEase stock analysis

Daily outlook

NetEase boosted an extraordinary 4.58% and closed at $320.96.

NetEase shares boosted 4.58% to $320.96 today. On March/19 NTES price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. NTES is soaring again after a 8.53% correction from its last top on Mar/24 at $328.00.

NTES stock chart (daily)

Weekly outlook

NetEase boosted an exceptional 6.51% this week. By mid March NTES plummed a spooky -12.22% in just one week.

NTES marked an uptrend of rising tops and rising bottoms. Since its last top by mid February at $359.86, price slid and bounced up back from $265.86. Breaking down under $265.86 would cancel the current uptrend and it might test lower supports. Note that $359.86 might act as a resistance line. Since last week when NTES stock price broke up the SMA40w line, it gained $35.90 (12.59%). Late September 2019, SMA10w and SMA20w crossed up triggering a rise of 26.53%.

NTES stock chart (weekly)

NetEase stock price history

NetEase IPO was on June 30th, 2000 at $3.30 per share1. Since then, NTES stock grew a 9,626.10%, with an average of 506.60% per year. If you had invested $1,000 in NetEase stock in 2000, it would worth $96,261.00 today.

1: Adjusted price after possible price splits or reverse-splits.

NetEase stock historical price chart

NTES stock reached 52-week highs on February/19 at $359.86, and all-time highs 2017-12-21 with a price of 361.63.

NetEase stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' NTES stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price forecast for NetEase stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, NetEase presented its financial report, posting an exceptional growth for the Earnings per Share (EPS) ratio. Experts expected $1.51 per share, but NetEase posted $1.92.
NTES earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a1.18n/a
2017-Q2-n/a0.9n/a
2017-Q32017-11-152.943.012.4%
2017-Q42018-02-071.521.49-2.0%
2018-Q12018-05-161.990.91-54.3%
2018-Q22018-08-081.622.4450.6%
2018-Q32018-11-142.11.8-14.3%
2018-Q42019-02-201.511.9227.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an astounding growth of 24.13% to $67,156.50 million dollars. However, its earnings margin (compared to sales) plunged to 9.16%, that is $6,152.41 million.

NTES annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,500 M-$724 M48.2%-
2014$1,887 M25.83%$767 M40.6%5.93%
2015$22,803 M1,108.13%$6,735 M29.5%778.68%
2016$38,179 M67.43%$11,605 M30.4%72.30%
2017$54,102 M41.71%$10,708 M19.8%-7.73%
2018$67,157 M24.13%$6,152 M9.2%-42.54%

Quarterly financial results

NetEase posted $19,844.30 M in revenues for 2018-Q4, a 17.73% up compared to previous quarter. Reported quarter income marked $1,697.70 M with a profit margin of 8.56%. Profit margin stayed steady a -0.92% compared to previous quarter when profit margin was 9.47%. When comparing sales to same quarter last year, NetEase sales marked a super good increase and rocketed a 783.57%. Looking back to recent quarterly results, NetEase posted 5 negative quarters in a row.
NTES quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$1,980 M-$569 M28.8%-
2017-Q2$1,950 M-1.52%$433 M22.2%-23.93%
2017-Q3$1,875 M-3.83%$380 M20.3%-12.31%
2017-Q4$2,246 M19.76%$198 M8.8%-47.96%
2018-Q1$14,173 M531.06%$752 M5.3%280.39%
2018-Q2$16,284 M14.89%$2,107 M12.9%180.16%
2018-Q3$16,855 M3.51%$1,596 M9.5%-24.22%
2018-Q4$19,844 M17.73%$1,698 M8.6%6.35%

NetEase ownership

When you are planning to buy shares of a stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For NetEase, 1.55% of all outstanding shares are owned by its staff.

In case of NetEase stock, 52.09% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for NTES stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to NetEase:

NTES
Market cap$41.1 B
Total shares128.0 M
Float shares70.4 M
  - Institutional holdings (%)52.1%
  - Insider holdings (%)1.6%
Shares in short selling0.0%

NetEase summary

Tuesday, March 31st, 2020
Open$311.81
Close$320.96
Day range$307.87 - $321.48
Previous close$306.91
Session gain4.58%
Average true range$23.66
50d mov avg$325.87
100d mov avg$317.09
200d mov avg$285.27
Daily patternlb01a
Weekly pattern lb03a

NetEase performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For NetEase, the comparison is made against .
Stock3m6m12m
NTESNetEase-0.83%25.12%18.75%

NetEase competitors

Unfortunately, we could not find any public company that could be defined as NetEase competitor. This doesn't mean NetEase does not have any competitor in the market, it's just we could not detected it.

    Latest NetEase stock news