#4 - NetEase (NASDAQ:NTES)
If you have an appetite for Chinese stocks, NetEase (NASDAQ:NTES) is definitely worth your attention. The company’s stock was already soaring when it posted its impressive first-quarter results. The company reported a revenue gain of 18% in the quarter, which is particularly noteworthy since the Chinese economy was being heavily affected by the Covid-19 pandemic.
However, NetEase was well positioned to stand out during a time when consumers were sheltered in place. To begin with, the company’s online gaming business, which accounts for nearly 80% of the company’s revenue, posted a 14% increase.
NetEase also saw strength from its spinoff, Youdao (NYSE:DAO). Although Youdao accounts for just 3% of the company’s total revenue, it grew at a 140% clip in the past year. The intelligent-learning company was a natural fit at a time when physical schools were closed.
NetEase’s other business units, including its online music business, grew over 28% on a year-over-year basis.
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.
Read More - Current Price
- $99.52
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $108.71 (9.2% Upside)
