NetEase Option Alert: Jun 20 $125 Puts at the Bid: 294 vs 0 OI; Earnings 2/20 Before Open 

NetEase Option Alert: Jun 20 $125 Puts at the Bid: 294 @ $26.0 vs 0 OI; Earnings 2/20 Before Open Ref=$102.55

NetEase (NASDAQ:NTES) Bolsa

NetEase

Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online game company gaming in China. While its initial success was built upon the massively multiplayer online role-playing game Fantasy Westward Journey, NetEase has expanded its portfolio with captivating franchises that resonate with both domestic and international players. Over the past decade, the company has created titles such as Justice, Identity V, Naraka: Bladepoint, and Eggy Party, all of which maintain significant player bases today. Beyond in-house development, the company also collaborates with likes of Microsoft and Marvel to create and publish games based on renowned IPs, including World of Warcraft, Diablo Immortal, and Marvel Rivals.

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Marvel Rivals, el juego PvP de superhéroes de Disney y NetEase, alcanza 20 millones de jugadores tras su debut en PC, PS5 y Xbox.

Marvel Rivals alcanza 20 millones de jugadores en menos de dos semanas

NetEase, Inc. - American Depositary Shares, each representing 5 ordinary shares

NetEase Inc

Benchmark analyst Fawne Jiang maintains NetEase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) with a Buy and raises the price target from $105 to $115.

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Benchmark Maintains Buy on NetEase, Raises Price Target to $115

On Thursday, NetEase, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) reported a fiscal fourth-quarter revenue decline of 1.4% year-on-year to $3.66 billion (26.7&nbsp;billion Chinese yuan), missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/n43840713/netease-announces-fourth-quarter-and-fiscal-year-2024-unaudited-financial-results" rel="noreferrer noopener">analyst consensus estimate of $3.74 billion</a>.
The Chinese gaming&nbsp;player's&nbsp;adjusted EPADS of $2.07 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $1.77</a>. The stock fell after the report.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43812289/wix-q4-earnings-beats-estimates-raises-2025-outlook-ai-powered-expansion-and-market-share-gains" rel="noreferrer noopener">Wix Q4 Earnings: EPS Beat, Issues Strong 2025 Outlook With Two Products Launch</a>
Segments and margins: Games and related value-added services revenues rose 1.5%&nbsp;year over year&nbsp;to $2.9 billion.&nbsp;The corresponding gross margin decreased by 280 bps to 67.5%, mainly attributable to higher revenue contributions from licensed games, which have comparatively lower gross profit margins.
Youdao,&nbsp;Inc.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAO#NYSE">DAO</a>) revenue declined by 9.5%&nbsp;year over year&nbsp;to $183.6 million,&nbsp;and&nbsp;the corresponding gross margin declined by 210 bps to 47.8%, primarily due to decreased net revenues from its&nbsp;learning services.
Cloud&nbsp;Music's&nbsp;revenues were $257.6 million, down 5.3% year over year, and its gross margin expanded by 160 bps to 31.9%, mainly due to increased net revenues from sales of membership subscriptions and continued improvement in cost control measures.
Innovative businesses and other revenue declined 17.0%&nbsp;year over year&nbsp;to $313.1 million, and the gross margin increased by 340 bps to 37.8%, mainly due to increased gross profit margins from Yanxuan.
As&nbsp;of December 31, 2024, NetEase held $18.0 billion in cash and equivalents and generated $1.78 billion in operating cash flow.
Dividend:&nbsp;The board of directors approved a dividend of&nbsp;$1.22025&nbsp;per ADS for the fourth quarter of 2024 versus $0.4350&nbsp;per ADS for the third quarter.
NetEase confirmed the laying off of the U.S.-based developers working on&nbsp;Marvel Rivals, the Verge <a target="_blank" href="https://www.theverge.com/news/615288/marvel-rivals-layoffs-netease-overseas-investments" rel="noreferrer noopener">cites</a> the company. However, the development of&nbsp;Rivals&nbsp;would continue with a core group of developers based in China.
Price Action: NTES stock is down 5.91% at $98.01 at&nbsp;the last check on Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/25/02/43812509/garmin-q4-earnings-wearables-and-adventure-watches-drive-growth-raises-dividend-20-projects-68-billion-revenue-for-2025" target="_blank" rel="noreferrer noopener">Garmin Q4 Earnings: Wearables and Adventure Watches Drive Growth, 20% Dividend Hike, Stock Soars</a></li>
</ul>
Photo via Shutterstock

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NetEase Q4 Earnings: Revenue Miss, Gaming and Cost Controls Drive Margins, Boosts Dividend

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NetEase shares are trading lower after the company reported worse-than-expected Q4 revenue results.

The board of directors approved a dividend of US$0.24405 per share (US$1.22025 per ADS) for the fourth quarter of 2024 to holders of ordinary shares and holders of ADSs as of the close of business on March 6, 2025, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars.
NetEase paid a dividend of US$0.0870&nbsp;per share (US$0.4350 per ADS) for the third quarter of 2024 in December 2024.

NetEase Board Approved A Dividend Of $1.22025/ADS For Q4 Vs $0.4350/ADS For Q3

NetEase Q4 Adj EPADS $2.07 Beats $1.77 Estimate, Sales $3.66B Miss $3.74B Estimate

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Earnings Scheduled For February 20, 2025

5 analysts have expressed a variety of opinions on NetEase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">3</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $113.4, a high estimate of $122.00, and a low estimate of $105.00. This upward trend is apparent, with the current average reflecting a 3.85% increase from the previous average price target of $109.20.
<img src="https://www.benzinga.com/files/images/story/2025/1739394077_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive NetEase is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Alex Poon</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$117.00</td>
<td>$108.00</td>
</tr>
<tr>
<td>Eddie Leung</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$122.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>Alex Poon</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$108.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Alicia Yap</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$115.00</td>
<td>$108.00</td>
</tr>
<tr>
<td>Fawne Jiang</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$105.00</td>
<td>$120.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to NetEase. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of NetEase compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of NetEase's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of NetEase's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/NTES/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on NetEase analyst ratings.</a>
<h2>Delving into NetEase's Background</h2>
NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).
<h3>Financial Insights: NetEase</h3>
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: NetEase's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -3.89%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.
Net Margin: NetEase's net margin excels beyond industry benchmarks, reaching 24.95%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): NetEase's ROE stands out, surpassing industry averages. With an impressive ROE of 4.97%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.55%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.08.
<h2>Analyst Ratings: Simplified</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Verdict: NetEase In The Eyes Of 5 Experts

NetEase shares are trading higher after Morgan Stanley raised its price target from $108 to $117.

Morgan Stanley analyst Alex Poon maintains NetEase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) with a Overweight and raises the price target from $108 to $117.

Morgan Stanley Maintains Overweight on NetEase, Raises Price Target to $117

Citigourp Global Markets 2% Protected Notes Linked To The Djia

QFIN

Shares of US-listed Chinese stocks are trading higher amid China's efforts to  get insurers to invest in stocks and support markets.

Sony Group Corp&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation <a target="_blank" href="https://www.benzinga.com/topic/gaming-industry" rel="noreferrer noopener">dumped two unannounced</a> live service projects at Syphon Filter&nbsp;and&nbsp;Days Gone&nbsp;developer Bend Studio and God of War&nbsp;game developer Bluepoint Games after a strategic review, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-16/sony-cancels-two-more-playstation-projects?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
PlayStation is currently discussing with the studios how to determine their following projects.
PlayStation remains aggressively invested in live-service games, which can be monetized months and years after their launch.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43010198/netflixs-avod-surge-and-wwe-content-fuel-optimism-analyst-sets-1000-price-forecast" rel="noreferrer noopener">WWE, Squid Game Fuel Netflix Ad-Supported Growth: Analyst Sets $1,000 Price Forecast</a>
Sony&#8217;s strategy bore it a hit in 2024&#8217;s&nbsp;Helldivers II&nbsp;and several flops, including&nbsp;Concord, prompting it to cancel several live-service games over the last few years, including one based on Spider-Man.
Sony sold <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41841647/sonys-q2-profit-surges-on-gaming-and-sensor-gains-but-ps5-sales-decline-raises-full-year-outlook" rel="noreferrer noopener">3.8 million PlayStation5 units</a> in the fiscal second quarter of 2024, compared to&nbsp;4.9 million a year ago. Sony&#8217;s Game &amp; Network Services revenue rose 12%&nbsp;to 1.07 trillion Japanese yen (on top of consolidated sales&nbsp;of ¥2.91 trillion), and operating income grew 184%&nbsp;to&nbsp;¥138.8 billion.
The video game industry battled challenges in the last two years, including losing <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40829756/microsoft-cuts-650-xbox-jobs-amid-restructuring-following-activision-blizzard-deal-report" rel="noreferrer noopener">thousands of jobs</a>. Notable gaming studio closures included Netlix Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">Southern California AAA</a> game studio, Team Blue, Take-Two Interactive Software Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>) <a target="_blank" href="https://www.benzinga.com/news/24/05/38583285/grand-theft-auto-parent-shuts-two-iconic-game-studios-as-part-of-sweeping-layoffs" rel="noreferrer noopener">London&#8217;s Roll7 </a><a target="_blank" href="https://www.benzinga.com/news/24/05/38583285/grand-theft-auto-parent-shuts-two-iconic-game-studios-as-part-of-sweeping-layoffs" rel="noreferrer noopener">and</a> Seattle&#8217;s Intercept Games, Microsoft Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) several <a target="_blank" href="https://www.benzinga.com/news/24/05/38732093/microsoft-shakes-up-xbox-division-closes-renowned-studios-in-major-cost-cutting-move" rel="noreferrer noopener">video-game studios</a> within its Xbox division, and NetEase Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) <a target="_blank" href="https://www.benzinga.com/markets/asia/24/08/40659768/netease-to-close-ouka-studios-developer-of-visions-of-mana-report" rel="noreferrer noopener">Ouka Studios</a>.
Reportedly, Krafton Inc. of&nbsp;PUBG: Battlegrounds earmarked over <a target="_blank" href="https://www.benzinga.com/25/01/42954938/pubg-developer-krafton-invests-136-million-in-game-studios-expands-ai-team-for-future-gaming-innovations" rel="noreferrer noopener">200 billion won ($136 million)</a> to over&nbsp;twelve game studios in sync with its artificial intelligence investment.
Over the past two years, Krafton incurred $680 million in investment in game studios. It also tapped Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) to showcase more lifelike non-player characters in its Inzoi life simulation game.
Elon Musk&#8217;s&nbsp;AI startup,&nbsp;xAI, remains focused on its AI-driven game studio. It is challenging the giant game studios, which, according to the Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) chief, prioritize profit over player engagement and creativity.
Last October,&nbsp;JPMorgan analysts&nbsp;expressed optimism over&nbsp;mobile gaming trends and spending on consoles backed by the gaming pipeline.
Sony Group stock surged over 11% in the last 12 months. Investors can gain exposure to the stock through Avantis International Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVDE#NYSE">AVDE</a>) and Invesco International Dividend Achievers ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PID#NASDAQ">PID</a>).
Price Action: SONY stock traded higher by 1.13% at $20.55 premarket at last check Friday.
Also Read:
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<li><a href="https://www.benzinga.com/general/gaming/24/11/41694104/microsofts-decision-to-shut-down-arkane-austin-called-stupid-by-studio-founder" target="_blank" rel="noreferrer noopener">Microsoft&#8217;s Decision To Shut Down Arkane Austin Called &#8216;Stupid&#8217; By Studio Founder</a></li>
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Photo via Shutterstock

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Sony Cancels Two Live-Service Games, Stays Committed to Long-Term Monetization

B of A Securities analyst Eddie Leung maintains NetEase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) with a Buy and raises the price target from $120 to $122.

B of A Securities Maintains Buy on NetEase, Raises Price Target to $122

NetEase shares are trading higher after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and raised its price target from $90 to $108.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Needham raised the price target for Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) from $375 to $400. Needham analyst Scott Berg maintained a Buy rating. Salesforce shares closed at $324.93 on Tuesday. <a href="https://www.benzinga.com/quote/CRM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities slashed Merck &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) price target from $130 to $110. Truist Securities analyst Robyn Karnauskas downgraded the stock from Buy to Hold. Wendy&#8217;s shares closed at $101.02 on Tuesday. <a href="https://www.benzinga.com/quote/MRK/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Canaccord Genuity raised the price target for Intuitive Machines, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LUNR#NASDAQ">LUNR</a>) from $17.5 to $26. Canaccord Genuity analyst Austin Moeller maintained a Buy rating. Intuitive Machines shares closed at $19.87 on Tuesday. <a href="https://www.benzinga.com/quote/LUNR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler increased the price target for Autodesk, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>) from $311 to $357. Piper Sandler analyst Clarke Jeffries upgraded the stock from Neutral to Overweight. Autodesk shares closed at $290.82 on Tuesday. See how other analysts view this stock.</li>
<li>B of A Securities boosted Ferguson Enterprises Inc. (NYSE FERG) price target from $185 to $225. B of A Securities analyst Arnaud Lehmann upgraded the stock from Underperform to Buy. Ferguson shares settled at $172.21 on Tuesday. <a href="https://www.benzinga.com/quote/FERG/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Jefferies raised GE HealthCare Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEHC#NASDAQ">GEHC</a>) price target from $95 to $103. Jefferies analyst Matthew Taylor upgraded the stock from Hold to Buy. GE HealthCare shares closed at $83.37 on Tuesday. <a href="https://www.benzinga.com/quote/GEHC/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Deutsche Bank raised Workday, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDAY#NASDAQ">WDAY</a>) price target from $265 to $300. Deutsche Bank analyst Brad Zelnick upgraded the stock from Hold to Buy. Workday shares closed at $249.68 on Tuesday.  <a href="https://www.benzinga.com/quote/WDAY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley boosted the price target for NetEase, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) from $90 to $108. Morgan Stanley analyst Alex Poon upgraded the stock from Equal-Weight to Overweight. NetEase shares settled at $89.72 on Tuesday. <a href="https://www.benzinga.com/quote/NTES/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities raised Bristol-Myers Squibb Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) price target from $62 to $65. Truist Securities analyst Robyn Karnauskas maintained a Buy rating. Bristol-Myers Squibb shares closed at $57.14 on Tuesday. <a href="https://www.benzinga.com/quote/BMY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>JP Morgan cut MercadoLibre, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>) price target from $2,150 to $1,950. JP Morgan analyst Marcelo Santos maintained a Neutral rating. MercadoLibre shares closed at $1,771.22 on Tuesday. <a href="https://www.benzinga.com/quote/MELI/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
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Salesforce To Rally More Than 23%? Here Are 10 Top Analyst Forecasts For Wednesday

Morgan Stanley analyst Alex Poon upgrades NetEase (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) from Equal-Weight to Overweight and raises the price target from $90 to $108.

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Morgan Stanley Upgrades NetEase to Overweight, Raises Price Target to $108

On Tuesday, Marvel Rivals posted on X (formerly Twitter) that it has hit 20 million players in less than 2 weeks after launch.
Marvel Rivals&nbsp;is a superhero team-based player versus player (PVP) shooter developed by Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Marvel Games and NetEase Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) NetEase Games in the Marvel Universe.
On December 9, the video game company said it reached <a href="https://www.benzinga.com/general/gaming/24/12/42397858/marvel-rivals-stuns-with-10-million-players-in-first-weekend" target="_blank" rel="noreferrer noopener">10 million players</a> globally following its launch on PC, PlayStation 5, and Xbox Series X/S.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&#x1f496; We are thrilled to announce that 20 million players have joined Marvel Rivals! Our gratitude for each of you is immense! &#x1f970;The spray is ready now, and we also included this number in the spray! Thank you for helping us achieve this milestone. &#x23f2;&#xFE0F;Log in from December 20th,… <a href="https://t.co/tr0k6NYZ95">pic.twitter.com/tr0k6NYZ95</a>
&mdash; Marvel Rivals (@MarvelRivals) <a href="https://twitter.com/MarvelRivals/status/1869080172814848471?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
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Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41841647/sonys-q2-profit-surges-on-gaming-and-sensor-gains-but-ps5-sales-decline-raises-full-year-outlook" rel="noreferrer noopener">Sony's Q2 Profit Surges on Gaming And Sensor Gains, But PS5 Sales Decline, Raises Full-Year Outlook</a>
The game features Marvel Cinematic Universe (MCU) heroes like Iron Man, Hulk, and Scarlet Witch, alongside comic book favorites like Cloak and Dagger, Iron Fist, and Squirrel Girl.
On December 6, Marvel Rivals <a target="_blank" href="https://www.benzinga.com/24/12/42366954/neteases-marvel-rivals-launches-with-444000-players-on-steam" rel="noreferrer noopener">debuted on Steam</a> with 444K players featuring heroes like Iron Man and Wolverine.
The success of the games bears testimony to the popularity of the Marvel superheroes. Disney acquired Marvel in 2009 <a target="_blank" href="https://www.benzinga.com/news/24/08/40157189/deadpool-wolverine-grosses-824m-globally-disney-hits-3b-milestone-report" rel="noreferrer noopener">for $4 billion</a>.
Marvel Studios emerged as the highest-grossing film franchise of all time, crossing the $30 billion mark at the <a target="_blank" href="https://thewaltdisneycompany.com/marvel-studios-30-billion-box-office/" rel="noreferrer noopener">global box office</a> as of July 2024, backed by the massive successes of Avengers: Endgame,&nbsp;Black Panther, Iron Man, and Deadpool &amp; Wolverine.
<a target="_blank" href="https://www.boxofficemojo.com/year/world/?ref_=bo_nb_in_tab" rel="noreferrer noopener">According to</a> Box Office Mojo, Marvel Studios' Deadpool &amp; Wolverine became the second-highest-grossing movie of 2024 ($1.34 billion), trailing only "Inside Out 2" ($1.7 billion).
The popularity of video games prompted Walt Disney and&nbsp;Netflix Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) to tap&nbsp;the sector's<a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40802898/netflix-games-hit-210m-downloads-which-game-took-the-no-1-spot" rel="noreferrer noopener"> frenzy</a>.
Walt Disney reported <a target="_blank" href="https://www.benzinga.com/24/11/41971559/disneys-q4-boosted-by-streaming-gains-strong-box-office-and-solid-parks-performance" rel="noreferrer noopener">fiscal fourth-quarter&nbsp;2024</a> revenue growth of 6% to $22.57 billion, beating the&nbsp;consensus estimate of $22.35 billion. Adjusted EPS of $1.14 beat the&nbsp;analyst consensus of $1.10. The stock surged 25% year-to-date.
NetEase reported a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41966622/netease-q3-earnings-top-forecasts-as-cloud-music-grows-gaming-weakens" rel="noreferrer noopener">fiscal third-quarter</a> revenue decline of 3.9% to $3.73 billion, topping the&nbsp;consensus estimate of $3.65 billion. The adjusted EPADS of $1.67 beat the&nbsp;analyst consensus estimate of $1.61. The stock is up over 1% year-to-date.
Also Read:
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Disney's Marvel Rivals Game Hits 20 Million Players, Proves Superhero Power Still Reigns

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NetEase Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) shares are under pressure, down 4.4% to $96.49 Tuesday afternoon, as China's latest economic data highlights a challenging environment for consumer-driven sectors. November trade figures revealed a <a href="https://www.benzinga.com/24/12/42414647/chinese-stocks-sink-on-weak-trade-data-they-rushed-to-get-goods-to-the-us-before-new-tariffs-are-imposed">3.9% year-over-year drop</a> in imports, signaling weakening domestic demand.
This is a troubling indicator for NetEase, whose revenue heavily depends on consumer spending on online games, digital content and other services in China.
What To Know: NetEase faces mounting challenges in a market overshadowed by a housing crisis and sluggish economic activity. Despite promises of <a href="https://www.benzinga.com/government/regulations/24/12/42391254/us-listed-chinese-stocks-jump-on-chinas-stimulus-measures-looser-monetary-policy-assurances">fiscal and monetary stimulus</a> from Beijing, investors remain skeptical of their efficacy given China's towering debt levels and recent signs of deflationary pressures. This casts doubt on the broader recovery of consumer spending, critical for NetEase's sustained growth.
Adding to NetEase's woes, geopolitical tensions and regulatory uncertainties loom over China's tech sector. While exports showed growth, driven by manufacturers rushing to meet U.S. demand before potential tariffs, this trend offers little benefit to NetEase, whose core operations are domestically focused. 
Without a stronger rebound in domestic consumption, NetEase may struggle to meet growth expectations, putting downward pressure on its stock.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42421528/trumps-tariff-storm-3-survival-strategies-us-companies-are-using-to-fight-back">Trump&#8217;s Tariff Storm: 3 Survival Strategies US Companies Are Using To Fight Back</a>
Investors can gain exposure to NTES by investing in the KraneShares CSI China Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NASDAQ">KWEB</a>).
<h2 class="wp-block-heading">How To Buy NTES Stock</h2>
By now you're likely curious about how to participate in the market for NetEase &#8211; be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of <a href="https://www.benzinga.com/money/best-stock-trading-platforms">possible trading platforms here.</a> Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so. 
In the the case of NetEase, which is trading at $96.61 as of publishing time, $100 would buy you 1.04 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a <a href="https://www.benzinga.com/money/how-to-short-a-stock">stock can be found at this resource.</a> Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading &#8211; either way it allows you to profit off of the share price decline.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, NTES has a 52-week high of and a 52-week low of

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