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NetEase (NASDAQ:NTES) Shares Gap Down After Earnings Miss

NetEase logo with Computer and Technology background

Key Points

  • NetEase shares fell significantly, opening at $123.00 after closing at $134.90 due to a weaker than expected earnings announcement, reporting an EPS of $1.87 which missed estimates by $0.17.
  • Several analyst ratings were adjusted following earnings, with Barclays raising the price target to $118.00 and JPMorgan shifting from "overweight" to "neutral" while increasing the price objective.
  • Institutional investors have shown increased interest, with multiple funds significantly boosting their stakes in NetEase during recent quarters.
  • Want stock alerts on NetEase? Get 5 Weeks of MarketBeat All Access for $5. Get My Stock Alerts.

NetEase, Inc. (NASDAQ:NTES - Get Free Report) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $134.90, but opened at $123.00. NetEase shares last traded at $131.04, with a volume of 763,769 shares changing hands.

The technology company reported $1.87 EPS for the quarter, missing the consensus estimate of $2.04 by ($0.17). NetEase had a net margin of 30.12% and a return on equity of 23.08%.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Barclays upped their price target on shares of NetEase from $104.00 to $118.00 and gave the company an "equal weight" rating in a research note on Friday, May 16th. JPMorgan Chase & Co. lowered shares of NetEase from an "overweight" rating to a "neutral" rating and increased their price objective for the company from $135.00 to $140.00 in a research report on Monday, July 28th. Wall Street Zen raised shares of NetEase from a "buy" rating to a "strong-buy" rating in a report on Thursday, May 22nd. Finally, Deutsche Bank Aktiengesellschaft initiated coverage on shares of NetEase in a report on Monday, May 12th. They issued a "buy" rating and a $130.00 price target for the company. Two research analysts have rated the stock with a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $120.00.

View Our Latest Stock Analysis on NTES

Institutional Investors Weigh In On NetEase

Several hedge funds have recently bought and sold shares of NTES. NewSquare Capital LLC grew its holdings in shares of NetEase by 137.2% during the 2nd quarter. NewSquare Capital LLC now owns 185 shares of the technology company's stock worth $25,000 after purchasing an additional 107 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC bought a new stake in NetEase in the first quarter valued at about $26,000. Private Trust Co. NA increased its holdings in shares of NetEase by 266.0% in the second quarter. Private Trust Co. NA now owns 194 shares of the technology company's stock worth $26,000 after acquiring an additional 141 shares in the last quarter. USA Financial Formulas acquired a new stake in NetEase in the 2nd quarter valued at approximately $30,000. Finally, Mather Group LLC. grew its stake in NetEase by 1,415.0% in the first quarter. Mather Group LLC. now owns 303 shares of the technology company's stock valued at $31,000 after purchasing an additional 283 shares in the last quarter. 11.07% of the stock is owned by hedge funds and other institutional investors.

NetEase Stock Performance

The firm has a market capitalization of $83.46 billion, a price-to-earnings ratio of 19.00, a PEG ratio of 4.55 and a beta of 0.67. The company has a fifty day moving average of $131.94 and a two-hundred day moving average of $114.51.

About NetEase

(Get Free Report)

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.

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