NTES - NetEase And Its Real Value
2024-05-20 09:44:30 ET
Summary
- NetEase Inc. has a large portfolio of mobile games that contribute to over 80% of its revenue.
- The company is diversifying into other industries, such as educational services, to capture market share.
- China's regulatory laws on gaming time could potentially harm NetEase's revenue and growth, but the company is looking to expand into the Western gaming market.
- This article focuses on the fundamentals, the real value versus the current share price, and if NetEase is currently worth investing in.
Mobile gaming has changed the industry ever since its creation. NetEase, Inc. ( NTES ) has a large portfolio of mobile games that contribute to over 80% of its revenue. The gaming portion of the business continues to grow every year. NetEase also diversifies into other areas such as educational services with the product Youdao.
Youdao so far has been a mixed bag but does show the company's willingness to diversify its products and attempt to capture market share in other industries that still fall into the tertiary realm of core competencies. Even if the expansion into other markets such as the Western gaming market fails, the company still maintains a diverse portfolio of mobile games with high-potential value games in the pipeline that will drive continued growth....
NetEase And Its Real Value