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More top-performing CAPS members are feeling bullish about NetEase.com (Nasdaq: NTES): After being solidly stuck at a four-star ranking for months now, the stock recently reached five-star status. A total of 1,101 members have given their opinion on NetEase.com, with many of them offering analysis and commentary explaining the recent optimism.
Like fellow competitors Shanda Interactive (Nasdaq: SNDA), Giant Interactive (NYSE: GA), and Changyou.com in the Chinese online gaming space, NetEase impressed the markets and beat analyst expectations in its most recent quarter. Revenue grew 20% over last year, to $114.4 million, and earnings jumped 55%, despite a decline in online advertising.
Online gaming in China makes up about 93% of NetEase's revenue mix, and the sector as a whole is predicted to grow to $8.9 billion in sales in 2013 from last year's $2.75 billion, according to research firm Niko Partners. It's expected that the growth will be fueled by the rapid increase in Internet use in China, benefiting powerhouses such as Baidu (Nasdaq: BIDU) as well as small gaming companies.
U.S. companies such as Disney (NYSE: DIS) and Electronic Arts (Nasdaq: ERTS) have also scrambled to get in on the action, signing overseas deals for their games in the past several years. But the overall growth in the sector is not the only reason to be bullish on NetEase. It recently signed a contract with Activision Blizzard (Nasdaq: ATVI) to operate the widely popular World of Warcraft game in mainland China after Activision's contract with The9 ends soon.
To see what the very best CAPS members are saying now about NetEase.com -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.
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