TOP WIKIFOLIO TRADE
The buy recommendation for NetEase Inc. is based on the positive results and announcements of the Q1 2021 earnings call. The net revenues increased by 20.2% compared to the first quarter of 2020, and with the progressed strong game pipeline, including new titles for launch in the coming month, the revenue is expected to grow even further. CEO William Ding also noted that newer titles will broaden and diversify their game portfolio and they are confident they can deepen their international market presence. (NetEase Inc., 2021) Additionally, the expected growth is supported by the positive global market outlook of the gaming market, which is expected to grow at a strong CAGR of 11.5% until the end of 2026. (Global Industry Analysts Inc, 2021) Furthermore, the technical analysis of NetEase Inc. supports a strong buy recommendation, as highlighted in the four momentum indicators MACD, ROC, and the stochastic oscillator. Moreover, the PE-ratio reached 39.81 and outperformed by far the indus-try sector benchmark of 28.23.