(VIANEWS) – NetEase (NTES) shares saw their value decline by 15.24% to EUR88.50 on Friday after showing upward trends over the previous sessions, following NASDAQ’s positive performance which rose by 0.28% to EUR15,005.87. However, overall trends appear bullish as NetEase closed at EUR104.41 which was 12.19% below their 52-week high of EUR118.90.
About NetEase
NetEase, Inc. is a Chinese technology company that operates across several industries including online gaming, music streaming, intelligent learning services and internet content services. Their core businesses include developing and operating PC and mobile games under license from other developers; offering translation services; knowledge tools; educational solutions as well as providing knowledge tools. NetEase operates e-commerce, news and entertainment platforms along with payment services as well as payment platforms; they were founded in 1997 with headquarters located in Hangzhou China.
Yearly Analysis
Per the data provided, NetEase stock is currently trading at EUR88.50; which is significantly below its 52-week high of EUR118.90 but higher than its low of EUR66.32.
NetEase projects to see an incremental 5.7% sales growth this year and 11.2% in 2019.
NetEase currently enjoys an EBITDA score of 0.58, signifying positive cash flow generated from operations.
Overall, NetEase stock appears undervalued relative to its 52-week high price, and future sales growth forecast is encouraging. Potential investors should conduct further analysis before making an investment decision involving this stock.
Technical Analysis
NetEase stock is currently trading below both its 50-day and 200-day moving averages, signalling a downward price trend. Furthermore, today’s trading volume of 15,790,335 represents a significant jump from its typical daily volume of 1,155,370 and indicates high buying activity.
However, NetEase’s stochastic oscillator indicates that their stock may currently be overbought, which could indicate an immediate correction or temporary decline before continuing their upward trend.
Overall, NetEase stock has experienced some downward pressure recently; however, its high trading volume and overbought condition could signal a potential rebound in the near future. Investors may want to closely follow its performance over the coming days and weeks in order to determine their best course of action.
Quarter Analysis
Based on the information provided, NetEase has demonstrated strong sales growth for the current quarter at 9.2%. Furthermore, forecasted quarterly revenue growth estimates include an impressive 63.6% rate in this quarter and 8.1% for subsequent ones. Lastly, annualized quarterly revenue growth stood at 11.6% over 12 months to reach total revenues of 101.68B for 2018.
NetEase investors should anticipate a positive outlook and strong growth potential over the next quarters. Potential investors should carefully evaluate additional factors like NetEase’s financials, industry trends and competitive landscape before making investment decisions.
Equity Analysis
NetEase (NTES) appears to be an attractive investment option based on available data. With a dividend yield of 1.6% – slightly above that of the S&P 500 index – and a forward annual dividend rate of 1.76 which may signal future reduction in payments, this company may present investors with an attractive investment opportunity.
NetEase boasts an attractive price-to-earnings ratio of 15.36, suggesting it is not overvalued relative to its earnings. Furthermore, with an outstanding return on equity rate of 22.68% it demonstrates strong profits relative to shareholder equity.
NetEase has reported trailing twelve months EPS of EUR5.76 for their fiscal year 2018, which is an encouraging sign for its profitability. However, investors should keep in mind that past performance may not necessarily indicate future results. Overall, NetEase appears to be an stable and profitable company with a moderate dividend yield; however investors must perform thorough due diligence prior to making any investment decisions.
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