How to buy NetEase shares

Own NetEase shares in just a few minutes.

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NetEase, Inc is an internet content & information business with stocks listed in the US. NetEase shares (NTES) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was US$114.44 – a decrease of 2.96% over the previous week. Here's how to invest if you're based in Australia.

How to buy shares in NetEase

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for NetEase. Find the share by name or ticker symbol: NTES. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until NetEase reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$114.44, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of NetEase, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of NetEase. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

NetEase share price

Use our graph to track the performance of NTES stocks over time.

NetEase shares at a glance

Information last updated 2021-06-10.
52-week rangeUS$78.5478 - US$133.9141
50-day moving average US$111.63
200-day moving average US$107.7074
Target priceUS$134.18
PE ratio 37.8402
Dividend yield US$5.441 (4.93%)
Earnings per share (TTM) US$2.998

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy NetEase stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

NetEase price performance over time

Historical closes compared with the last close of $114.44

1 week (2021-06-08) 1.07%
1 month (2021-05-14) 8.64%
3 months (2021-03-16) 5.67%
6 months (2020-12-16) 29.47%
1 year (2020-06-16) 38.66%
2 years (2019-06-14) 115.16%
3 years (2018-06-15) 124.50%
5 years (2016-06-16) 246.20%

Is NetEase under- or over-valued?

Valuing NetEase stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of NetEase's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

NetEase's P/E ratio

NetEase's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 38x. In other words, NetEase shares trade at around 38x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

NetEase's PEG ratio

NetEase's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.7312. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into NetEase's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

NetEase's EBITDA

NetEase's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$17.9 billion.

The EBITDA is a measure of a NetEase's overall financial performance and is widely used to measure a its profitability.

NetEase financials

Revenue TTM US$77.1 billion
Operating margin TTM 18.58%
Gross profit TTM US$39 billion
Return on assets TTM 6.65%
Return on equity TTM 14.97%
Profit margin 16.79%
Book value 127.934
Market capitalisation US$77.5 billion

TTM: trailing 12 months

Shorting NetEase shares

There are currently 6.2 million NetEase shares held short by investors – that's known as NetEase's "short interest". This figure is 2.9% up from 6.0 million last month.

There are a few different ways that this level of interest in shorting NetEase shares can be evaluated.

NetEase's "short interest ratio" (SIR)

NetEase's "short interest ratio" (SIR) is the quantity of NetEase shares currently shorted divided by the average quantity of NetEase shares traded daily (recently around 1.9 million). NetEase's SIR currently stands at 3.21. In other words for every 100,000 NetEase shares traded daily on the market, roughly 3210 shares are currently held short.

However NetEase's short interest can also be evaluated against the total number of NetEase shares, or, against the total number of tradable NetEase shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case NetEase's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 NetEase shares in existence, roughly 10 shares are currently held short) or 0% of the tradable shares (for every 100,000 tradable NetEase shares, roughly 0 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against NetEase.

Find out more about how you can short NetEase stock.

NetEase's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like NetEase.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

NetEase's total ESG risk score

Total ESG risk: 17.05

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and NetEase's overall score of 17.05 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like NetEase is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

NetEase's environmental score

Environmental score: 0.86/100

NetEase's environmental score of 0.86 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that NetEase is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

NetEase's social score

Social score: 7.49/100

NetEase's social score of 7.49 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that NetEase is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

NetEase's governance score

Governance score: 7.42/100

NetEase's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that NetEase is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

NetEase's controversy score

Controversy score: 2/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. NetEase scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that NetEase has, for the most part, managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

NetEase, Inc was last rated for ESG on: 2019-01-01.

Total ESG score 17.05
Total ESG percentile 15.54
Environmental score 0.86
Environmental score percentile 1
Social score 7.49
Social score percentile 1
Governance score 7.42
Governance score percentile 1
Level of controversy 2

NetEase share dividends

59%

Dividend payout ratio: 58.54% of net profits

Recently NetEase has paid out, on average, around 58.54% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.77% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), NetEase shareholders could enjoy a 0.77% return on their shares, in the form of dividend payments. In NetEase's case, that would currently equate to about $5.441 per share.

NetEase's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

NetEase's most recent dividend payout was on 17 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 1 June 2021 (the "ex-dividend date").

Have NetEase's shares ever split?

NetEase's shares were split on a 5:1 basis on 1 October 2020. So if you had owned 1 share the day before before the split, the next day you'd have owned 5 shares. This wouldn't directly have changed the overall worth of your NetEase shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for NetEase shares which in turn could have impacted NetEase's share price.

NetEase share price volatility

Over the last 12 months, NetEase's shares have ranged in value from as little as US$78.5478 up to US$133.9141. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while NetEase's is 0.437. This would suggest that NetEase's shares are less volatile than average (for this exchange).

NetEase overview

NetEase, Inc. provides online services focusing on gaming, communication, and commerce in the Peoples' Republic of China and internationally. The company operates in three segments: Online Games Services, Youdao, and Innovative Businesses and Others. It develops and operates PC and mobile games, as well as offers games licensed from other game developers. The company's products and services include Youdao Dictionary, an online knowledge tool; smart devices, such as Youdao Smart Pen, Youdao Dictionary Pen, Youdao Pocket Translator, and Youdao Cloud Pen; online courses; interactive learning apps; and enterprise services, such as Youdao Smart Cloud, a cloud-based platform that helps third-party app developers, smart device brands, and manufacturers to access its optical character recognition capability and neural machine translation engine. Its products and services also include NetEase Cloud Music, a music streaming platform; Yanxuan, an e-commerce platform, which sells private label products, including consumer electronics, food, apparel, homeware, kitchenware, and other general merchandise; NetEase Media, an internet media platform; NetEase Mail, an email service; NetEase CC Live streaming, a live streaming platform with a focus on game broadcasting; and NetEase Pay, a payment platform. The company was formerly known as NetEase.com, Inc. and changed its name to NetEase, Inc. in March 2012. NetEase, Inc. was founded in 1997 and is headquartered in Hangzhou, the People's Republic of China.

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