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NTESNetEase, Inc.Sell5.7·$118.82-0.55%
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NetEase, Inc. (NTES) Stock Analysis

Temp Headwind edge

SellVALUE-TRAP 1/5High Confidence

Communication Services · Electronic Gaming & Multimedia

Sell if holding. Momentum 2.7/10 is below the 5.0 floor at $118.82 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.5): -1.5; Sector modifier (Communication Services): -0.8.

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; NetEase Cloud Music; and Innovative... Read more

$118.82+25.5% A.UpsideScore 5.7/10#2 of 5 Electronic Gaming & Multimedia
QualityF-score8 / 9FCF yield44.61%
IncomeYield2.53%(5y avg 1.89%)Payout39.66%sustainable
Stop $111.50Target $149.00(analyst − 8%)A.R:R 2.3:1
Analyst target$161.96+36.3%31 analysts
$149.00our TP
$118.82price
$161.96mean
$200

Sell if holding. Momentum 2.7/10 is below the 5.0 floor at $118.82 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.5): -1.5; Sector modifier (Communication Services): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.7/10, high confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 66d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-09
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 13, 202666d to earnings· next earnings call

Thesis

Rewards
V7 flight-to-quality bonus: +0.5 (Q=8.2 in RISK_OFF)
High-quality business
Attractive valuation
Risks
Sector modifier (Communication Services): -0.8
Leverage penalty (D/E 6.5): -1.5
Consecutive earnings misses (3)

Key Metrics

P/E (TTM)15.3
P/E (Fwd)11.2
Mkt Cap$76.6B
EV/EBITDA5.6
Profit Mgn29.8%
ROE22.1%
Rev Growth6.1%
Beta0.80
Dividend2.53%
Rating analysts34

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C1.91bearish
IV55%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
2.5
Rsi
3.8
Ma Position
6.0
Volume distribution (falling OBV)Below 200-MA, MA slope -1.3%/30d — confirmed downtrend

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
2.6
Revenue Growth
4.0
GatesMomentum 2.7<4.5Death cross (50MA < 200MA)A.R:R 2.3 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 66d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
62 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $105.44Resistance $125.94

Price Targets

$112
$149
A.Upside+25.4%
A.R:R2.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! momentum at 2.7 (below the engine's 4.5 threshold)
! Death cross — 50-day MA below 200-day MA

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-08-13 (66d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NTES stock a buy right now?

Sell if holding. Momentum 2.7/10 is below the 5.0 floor at $118.82 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 6.5): -1.5; Sector modifier (Communication Services): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $111.50. Score 5.7/10, high confidence.

What is the NTES stock price target?

Take-profit target: $149.00 (+25.5% upside). Prior stop was $111.50. Stop-loss: $111.50.

What are the risks of investing in NTES?

Sector modifier (Communication Services): -0.8; Leverage penalty (D/E 6.5): -1.5; Consecutive earnings misses (3).

Is NTES overvalued or undervalued?

NetEase, Inc. trades at a P/E of 15.3 (forward 11.2). TrendMatrix value score: 8.3/10. Verdict: Sell.

What do analysts say about NTES?

34 analysts cover NTES with a consensus score of 4.2/5. Average price target: $162.

What does NetEase, Inc. do?NetEase, Inc. engages in online games, music streaming, online intelligent learning services, and internet content...

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; NetEase Cloud Music; and Innovative Businesses and Others segments. It develops and operates mobile and PC games; and offers games licensed from other developers. The company also provides live streaming service, and other related or ancillary value-added services related to games, such as the sale of game-themed merchandise. In addition, it offers digital content services with interactive learning features, including Youdao Lingshi and Youdao Literature; STEAM courses consisting computer coding courses and other STEAM courses; and adult courses, such as China University massive open online course. Further, the company provides Youdao Dictionary, an online language tool; Confucius, a large language model for the education sector; Hi Echo, an AI-driven virtual English-speaking tutor; Mr. P AI Tutor, a conversation-based tool; Youdao Desktop Translation, a desktop dictionary tool; U-Dictionary, an online dictionary and translation app; iRecord, an audio transcription tool; LectMate, an interpretation software for study-abroad lecture scenarios; iArch, an AI home design software; Baby Genius, an AI baby generator; and One Translate Translator, a translation tool for travelers. It also offers online marketing services consisting of performance-based advertising services, and global marketing and promotion services through banners, text links, videos, logos, buttons, and rich media. Additionally, the company develops and offers smart devices, including Youdao Dictionary Pen, Youdao Listening Pod, and Youdao Smart Learning Pad. NetEase, Inc. was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. The company was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.

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