- NetEase’s adjusted net income per American Depositary Share (ADS) was 14.73 yuan, slightly below the expected 14.76 yuan.
- Total revenue came in at 28.36 billion yuan, missing the anticipated 29.22 billion yuan mark.
- Revenue from Games and Related Value-Added Services totalled 23.3 billion yuan, falling short of the expected 23.88 billion yuan.
- Innovative Businesses and Others generated a net revenue of 1.4 billion yuan, compared to the forecasted 1.63 billion yuan.
- Youdao’s net revenue was 1.6 billion yuan, slightly under the estimated 1.66 billion yuan.
- Cloud Music achieved a net revenue of 2.0 billion yuan, just below the expected 2.02 billion yuan.
- Gross profit was reported at 18.18 billion yuan, not meeting the estimated 18.64 billion yuan.
- Investor sentiment is mostly positive, with 34 analysts recommending a buy, 3 recommending a hold, and none recommending a sell.
NetEase Inc on Smartkarma
Analyst coverage of NetEase Inc on Smartkarma by Ying Pan highlights a positive outlook for the company. In the research report titled “[NetEase, Inc. (NTES US, BUY, TP US$136) TP Change]: C1Q25 Review: Game Upcycle + Margin Leverage,” it’s mentioned that NetEase exceeded revenue and profit expectations in Q1. The strong performance was driven by game revenue and AI-enhanced advertising, resulting in improved margins. Analysts have increased the target price for NetEase to $136, citing the positive impact of the game revenue upcycle and operational improvements through AI-enhanced advertising and organizational streamlining.
Ying Pan maintains a bullish sentiment on NetEase, keeping the company on the TOP BUY list and raising the target price from US$122 to $136. With the game revenue upcycle continuing to provide momentum, the outlook for NetEase remains optimistic. This analysis provides investors with valuable insights into NetEase’s performance, highlighting the company’s strengths and growth potential in the competitive market.
A look at NetEase Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
NetEase, Inc. is positioned for a promising long-term future based on the Smartkarma Smart Scores. With a solid showing across various factors, including value, dividend, growth, resilience, and momentum, the company appears well-rounded in its outlook. NetEase Inc‘s high marks in dividend, growth, resilience, and momentum further solidify its standing in the market.
As an Internet technology company in China, NetEase Inc offers a range of services such as online gaming, email, web portal, digital advertising, search, mobile applications, and e-commerce. This diverse portfolio, coupled with its strong Smart Scores, suggests that NetEase Inc is set to maintain a competitive edge and continue delivering value to its stakeholders in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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