Alert: Negative Investment/Fundamental Signals (12/5/23)-Netease Inc (NASDAQ: NTES)

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Netease Inc (NASDAQ: NTES). Important negative changes in investment behavior have recently occurred: the stock fell on very heavy volume.

Meaningful negative changes in Netease Inc (NASDAQ: NTES) fundamentals have recently occurred: significant quarterly sales deceleration occurred, the consensus estimate for December, 2023 decreased significantly, and the consensus estimate for December, 2024 decreased significantly.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

Reflecting future returns on capital that are forecasted to exceed the cost of capital, NTES is expected to continue to be a Value Builder.

Netease has a current Value Trend Rating of C (High Neutral). This rating combines very contradictory signals from two proprietary PTR measures of a stock’s attractiveness. Netease has a slightly negative Appreciation Score of 34 but a very high Power Rating of 91, leading to the High Neutral Value Trend Rating.

Recent Price Action

On 12/5/23, Netease Inc (NASDAQ: NTES) stock declined modestly by -1.4%, closing at $102.73. Moreover, trading volume in this decline was exceptionally high at 233% of normal. Relative to the market the stock has been exceptionally strong over the last nine months but has declined -10.1% during the last week.

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