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NTES Bullish Call Spread is Undervalued at $3.20
Market Chameleon (Mon, 22-Jan 5:15 AM ET)
NetEase, which started on an internet portal service in 1997, is a leading online services provider in China. Its key services include online/mobile games, cloud music, media, advertising, email, live streaming, online education, and e-commerce. The company develops and operates some of the China's most popular PC client and mobile games, and it partners with global leading game developers, such as Blizzard Entertainment and Mojang (a Microsoft subsidiary).
Netease - American Depositary Shares Each Representing 5 trades on the NASDAQ stock market under the symbol NTES.
As of January 29, 2025, NTES stock price declined to $100.89 with 729,406 million shares trading.
NTES has a beta of 0.31, meaning it tends to be less sensitive to market movements. NTES has a correlation of 0.01 to the broad based SPY ETF.
NTES has a market cap of $65.07 billion. This is considered a Large Cap stock.
Last quarter Netease - American Depositary Shares Each Representing 5 reported $4 billion in Revenue and $1.66 earnings per share. This beat revenue expectation by $85 million and exceeded earnings estimates by $.05.
In the last 3 years, NTES traded as high as $118.90 and as low as $53.09.
The top ETF exchange traded funds that NTES belongs to (by Net Assets): AVEM, ESPO, SOCL, PGJ, HERO.
NTES has underperformed the market in the last year with a return of +1.0%, while SPY returned +24.9%. This shows that you would have done better investing in the overall market (through SPY) over the last year than in NTES shares. However, NTES has outperformed the market in the last 3 month and 2 week periods, returning +25.0% and +5.1%, while SPY returned +4.0% and +3.4%, respectively. This indicates NTES has been having a stronger performance recently.
NTES support price is $101.02 and resistance is $105.82 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that NTES shares will trade within this expected range on the day.