Stock of the Day

December 17, 2019

NetEase (NTES)

$121.78
-$0.98 (-0.8%)
Market Cap: $78.60B

About NetEase

NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content services businesses in China and internationally . The company operates through Games and Related Value-Added Services, Youdao, Cloud Music, and Innovative Businesses and Others segments. It develops and operates PC and mobile games, as well as 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 translation needs of business and leisure travelers; U-Dictionary, an online dictionary and translation app; Youdao Kids' Dictionary, a smart and fun tool; smart devices, such as Youdao Dictionary Pen, Youdao Smart Learning Pad, Youdao Listening Pod, Youdao Smart Light, Youdao Pocket Translator, and Youdao Super Dictionary; online courses; interactive learning apps; and education digitalization solutions, such as Youdao Smart Learning Terminal, a device that automates paper-based homework processing; Youdao Smart Cloud, a cloud-based platform that allows third-party app developers, smart device brands, and manufacturers to the company's OCR capabilities; and Youdao Sports, a sports-centric educational system. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products; www.163.com portal and related mobile app, Wangyi Xinwen, which deliver 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 with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.

Today's Trend

NetEase, Inc. (NASDAQ: NTES) shares have increased as investors weighed better-than-expected revenue and shareholder returns against a significant quarterly earnings miss.

  • NetEase reported second-quarter revenue of $4.43 billion, above the $4.33 billion analyst consensus. The revenue beat indicates continued demand for its online games and other services, helping support the stock despite weaker profitability. NetEase shares fall as Q2 earnings miss overshadows stronger revenue
  • The company declared a second-quarter cash dividend for Hong Kong shareholders, reinforcing its capital-return program and potentially improving investor confidence in NetEase’s financial flexibility. NetEase Declares Q2 2026 Cash Dividend
  • Management’s earnings presentation and conference call provide additional detail on the quarterly performance and outlook. Investors are likely focused on game launches, bookings, operating margins and management’s plans for research and development spending. NetEase Q2 2026 Earnings Call Transcript
  • NetEase Cloud Music, a separately listed affiliate, posted first-half revenue growth, but operating profit and adjusted net profit declined. The results offer mixed signals about the broader ecosystem and are not a direct measure of NTES earnings. NetEase Cloud Music Reports First Half 2026 Results
  • Second-quarter EPS was $1.80, well below the $2.31 consensus estimate. Higher research and development expenses weighed on profits, making the earnings miss the primary downside catalyst and raising concerns about near-term margin pressure. NTES Stock Falls After Missing Q2 Earnings Estimates
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