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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$87.35 – a decrease of 3.87% over the previous week.
How to buy shares in NetEase
- 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.
- 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.
- 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.
- 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.
- Decide on how many to buy. At last close price of US$87.35, 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.
- 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.
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What's in this guide?
- NetEase key stats
- Compare share trading platforms
- Is NetEase stock a buy or sell?
- NetEase performance over time
- Can I short NetEase shares?
- Is NetEase suitable for ethical investing?
- Are NetEase shares over-valued?
- NetEase's financials
- How volatile are NetEase shares?
- Does NetEase pay a dividend?
- Have NetEase shares ever split?
- Other common questions
How has coronavirus impacted NetEase's share price?
Since the stock market crash in March caused by coronavirus, NetEase's share price has had significant negative movement.
Its last market close was US$87.35, which is 74.68% down on its pre-crash value of US$344.99 and 204.36% down on the lowest point reached during the March crash when the shares fell as low as US$265.855.
If you had bought US$1,000 worth of NetEase shares at the start of February 2020, those shares would have been worth US$905.36 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$264.67.
NetEase share priceUse our graph to track the performance of NTES stocks over time.
NetEase shares at a glance
|Latest market close||USD$87.35|
|52-week range||USD$88.12 - USD$517.65|
|50-day moving average||USD$94.4109|
|200-day moving average||USD$84.5242|
|Dividend yield||USD$1.19 (1.3%)|
|Earnings per share (TTM)||USD$6.669|
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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
|1 week (2020-10-13)||-3.87%|
|1 month (2020-09-18)||-81.26%|
|3 months (2020-07-20)||-81.45%|
|6 months (2020-04-20)||-74.96%|
|1 year (2019-10-18)||-69.46%|
|2 years (2018-10-19)||-58.44%|
|3 years (2017-10-20)||-68.42%|
|5 years (2015-10-20)||-37.25%|
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 26x. In other words, NetEase shares trade at around 26x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-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 68.15. 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.
|Gross profit TTM||US$31.6 billion|
|Return on assets TTM||7.9%|
|Return on equity TTM||20.46%|
|Market capitalisation||US$62.8 billion|
TTM: trailing 12 months
Shorting NetEase shares
There are currently 2.0 million NetEase shares held short by investors – that's known as NetEase's "short interest". This figure is 1.6% up from 1.9 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 507884.15584416). NetEase's SIR currently stands at 3.85. In other words for every 100,000 NetEase shares traded daily on the market, roughly 3850 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 02/29/2020) 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
|Total ESG score||17.05|
|Total ESG percentile||15.54|
|Environmental score percentile||1|
|Social score percentile||1|
|Governance score percentile||1|
|Level of controversy||2|
NetEase share dividends
Dividend payout ratio: 8.14% of net profits
Recently NetEase has paid out, on average, around 8.14% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.3% 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 1.3% return on their shares, in the form of dividend payments. In NetEase's case, that would currently equate to about $1.19 per share.
While NetEase's payout ratio might seem low, this can signify that NetEase is investing more in its future growth.
NetEase's most recent dividend payout was on 17 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 26 August 2020 (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$88.12 up to US$517.65. 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 0.6834. This would suggest that NetEase's shares are less volatile than average (for this exchange).
NetEase, Inc., an Internet technology company, provides online services focusing on content, community, 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-client 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; Youdao Cloudnote, a notetaking tool; smart devices, such as Youdao Smart Pen, Youdao Dictionary Pen, and Youdao Pocket Translator; 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 advanced 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 service; NetEase Mail, an email service; 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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