NetEase, Inc. offers online services that focus on gaming, communication, and commerce in the People's Republic of China and internationally. The company is headquartered in Hangzhou, the People's Republic of China.
| Revenue (TTM) | $114.39B |
| Gross Profit (TTM) | $75.14B |
| EBITDA | $40.25B |
| Operating Margin | 41.40% |
| Return on Equity | 22.10% |
| Return on Assets | 11.00% |
| Revenue/Share (TTM) | $35.83 |
| Book Value | $7.58 |
| Price-to-Book | 3.46 |
| Price-to-Sales (TTM) | 0.73 |
| EV/Revenue | 3.662 |
| EV/EBITDA | 10.41 |
| Quarterly Earnings Growth (YoY) | 3.10% |
| Quarterly Revenue Growth (YoY) | 6.10% |
| Shares Outstanding | $640.72M |
| Float | $1.75B |
| % Insiders | 1.39% |
| % Institutions | 9.92% |
Volatility is currently expanding
Investors interested in stocks from the Internet - Software and Services sector have probably already heard of NetEase (NTES) and Tyler Technologies (TYL). But which of these two stocks presents investors with the better value opportunity right now?
NetEase (NTES) is deeply undervalued, trading at 10x free cash flow and offering a 24% upside to a $150/share target. International expansion, evidenced by hits like Marvel Rivals and Where Winds Meet, is accelerating, with overseas revenue now at 10.1%. NTES boasts a 38% free cash flow margin, $25.3B cash, low leverage, and expanding gross margins, supporting dividends and reinvestment.
NetEase (NTES) could produce exceptional returns because of its solid growth attributes.
NetEase (NTES) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
NetEase (NTES) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Investors looking for stocks in the Internet - Software and Services sector might want to consider either NetEase (NTES) or Tyler Technologies (TYL). But which of these two stocks presents investors with the better value opportunity right now?
The average of price targets set by Wall Street analysts indicates a potential upside of 34.7% in NetEase (NTES). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
The ticker investors used to know as VanEck Gaming ETF (NASDAQ:BJK) officially converted to the VanEck Digital Native Economy ETF on April 9, 2026, trading under the new symbol GENZ.
NetEase is a cash-rich gaming compounder with solid fundamentals, shareholder-friendly management, and attractive headline valuation but faces a persistent China discount. Q1 results showed margin quality with 6.1% revenue growth and 14.8% gross profit growth, but EPS stagnation underscores the need for new titles to drive earnings. NTES remains heavily concentrated in gaming (81.9% of FY25 revenue), with limited diversification and ongoing China policy risks impacting valuation multiples.
NetEase NASDAQ: NTES reported higher first-quarter revenue for 2026, driven by continued growth in its games business and stronger gross margins, while management highlighted momentum across major titles including Where Winds Meet, Marvel Rivals and the Fantasy Westward Journey franchise.
