NetEase

NTES

Market cap $94B

I track a universe of 50 high-quality dividend growth stocks to identify opportune investments based on valuation and future return potential. As of October 2, 2025, 22 stocks offer attractive future return estimates of at least 10%, with 15 appearing potentially undervalued by my Free Cash Flow model. Top-ranked stocks include MKTX, RMD, MPWR, RACE, and MSCI, each offering strong projected returns driven by yield, valuation upside, and EPS growth.

I am upgrading NetEase to "Buy," driven by a more favorable regulatory environment and a positive Q3 outlook. Recent surge in Chinese game approvals signals a supportive policy shift, justifying a removal of the regulatory discount from NTES's valuations. An increase in deferred revenue and more focused marketing investments suggest that NetEase should deliver a strong set of 3Q2025 results.

Stability is at the top of the list of traits investors look for in dividend stocks, regardless of the sector or industry. The go-to dividend plays of long-term buy-and-hold strategists are not flashy companies or those in red-hot industries, but rather "boring" firms with a proven track record of consistency, even in difficult markets or economic climates.

NetEase, Inc. (NASDAQ:NTES ) Q2 2025 Earnings Conference Call August 14, 2025 8:00 AM ET Company Participants Bill Pang - Vice President of Corporate Development Lei Ding - Founder, CEO & Director Conference Call Participants Alicia Yap - Citigroup Inc., Research Division Felix Liu - UBS Investment Bank, Research Division Jialong Shi - Nomura Securities Co. Ltd., Research Division Lincoln Kong - Goldman Sachs Group, Inc., Research Division Ritchie Sun - HSBC Global Investment Research Xiaomeng Zhuang - BofA Securities, Research Division Yang Bai - China International Capital Corporation Limited, Research Division Yang Liu - Morgan Stanley, Research Division Brandi Piacente - The Piacente Group, Inc. Operator Good day, and welcome to the NetEase Second Quarter 2025 Earnings Conference Call.

Investors interested in Internet - Software and Services stocks are likely familiar with Globant (GLOB) and NetEase (NTES). But which of these two companies is the best option for those looking for undervalued stocks?

July PPI/Core PPI Jumped Unexpectedly.

NetEase Inc NTES reported its second-quarter results broadly in-line with expectations, according to Goldman Sachs.

Chinese video game publisher NetEase matched Q2 earnings estimates but revenue was below views. Shares fell.

HANGZHOU, China , Aug. 14, 2025 /PRNewswire/ -- NetEase Cloud Music Inc. (HKEX: 9899 or the "Company"), a leading interactive music streaming service provider in China, today announced its financial results for the first half of 2025 ended June 30, 2025. Summary of Key Financial Metrics  (RMB in thousands, unless otherwise stated) Six months ended 30 June 2025 2024 (Unaudited) (Unaudited) Revenue 3,827,117 4,070,493 Gross profit 1,392,485 1,425,731 Operating profit 844,506 599,933 Profit before income tax 1,068,060 813,578 Profit for the period (1) 1,882,142 809,949 Non-IFRS Measure (2 ) : Adjusted operating profit 905,360 670,850 Adjusted net profit 1,946,353 880,749 Note: (1)  During the period ended 30 June 2025, the Group recognised a deferred income tax credit of RMB849.4 million which primarily arose from the recognition of deferred tax assets in respect of cumulative tax losses incurred by a wholly-owned subsidiary.

HANGZHOU, China , Aug. 14, 2025 /PRNewswire/ -- Youdao, Inc. ("Youdao" or the "Company") (NYSE: DAO), an AI-powered solutions provider specializing in artificial intelligence applications for the learning and advertising verticals, today announced its unaudited financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights Total net revenues were RMB1.4 billion (US$197.9 million), representing a 7.2% increase from the same period in 2024.