
NetEase (NTES) Stock Forecast & Price Target
NetEase (NTES) Analyst Ratings
Bulls say
NetEase's games revenue experienced a 2% year-over-year growth in Q4, primarily driven by a remarkable 59% increase in PC games, facilitated by the return of popular Blizzard titles and the success of established games alongside new releases. The company anticipates sustained growth for PC games in the upcoming fiscal year, with a projected increase of 32% year-over-year for FY25, reflecting strong performance and engaging player dynamics. Management's confidence in enhancing player engagement through improved domestic operations and localization efforts further supports a positive outlook for the company's overall gaming segment, prompting an upward revision of its overall games growth projection to 6.5% year-over-year for FY25.
Bears say
NetEase's financial outlook is negatively impacted by a significant decline in mobile game revenue, which fell 10% year-over-year in the fourth quarter due to a lack of both strong existing titles and new game launches. The company faced downward pressures across various business segments, with Youdao, Cloud Music, and other revenues declining by 10%, 5%, and 17% year-over-year, respectively, suggesting a broad-based weakening in performance. Compounding these issues, the gross profit margin decreased to 60.8% due to increased reliance on licensed games with lower margins, leading to lowered revenue projections for both fourth quarter and full-year growth.
This aggregate rating is based on analysts' research of NetEase and is not a guaranteed prediction by Public.com or investment advice.
NetEase (NTES) Analyst Forecast & Price Prediction
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