2024-07-04 08:36:36 ET
Summary
- NetEase's valuation contractions stem from lower growth expectations, but near-term alpha is possible if valuation multiple contractions are overextended.
- Regulatory pressures, economic conditions, and maturing game franchises impact revenue and EPS growth; strategic international expansion aims to offset these challenges.
- Despite short-term obstacles, the long-term strategy could yield higher-than-expected growth rates if well-executed; my 6-12 month price target suggests a 16.85% potential upside.
...
Read the full article on Seeking Alpha
For further details see:
NetEase: Undervalued In The Near Term