10 Best Chinese Stocks to Buy According to Billionaires

4. NetEase, Inc. (NASDAQ:NTES)

No. of Billionaire Investors: 11

Total Billionaire Stake: $627.8 Million

No. of Hedge Fund Holders: 38

NetEase, Inc. (NASDAQ:NTES) is a leading internet technology company developing and operating some of China’s most famous mobile and PC-client games. The company operates popular international online games in China through collaborations with global game developers such as Blizzard Entertainment. The company also operates online learning services, smart devices, and marketing tools through its Youdao platform. NetEase Cloud Music offers online music streaming services with membership subscriptions.

NetEase, Inc. (NASDAQ:NTES) had mixed results in 2024, while surpassing the full-year earnings estimates, it missed revenue consensus estimates. The company posted an EPS of $7.14, exceeding estimates of $6.84. The revenue came in at $14.51 billion, missing the estimated $14.58 billion. On the bright side, the Gaming segment performed better compared to 2023. The online games revenue reached RMB 80.4 billion for 2024, up 6% from a year ago. The PC client games also experienced a 17% growth year-over-year.

On March 3, Morgan Stanley analyst Yang Liu CFA maintained a Buy rating on NTES shares, keeping the price target at $117. The analyst highlighted that NetEase’s strategic move to relaunch Condor Heroes 2.0 will revitalize a previously underperforming game. The improvements in the features of the game seem to be attracting more players. Barclays analyst Jiong Shao kept an Equal-weight rating on NTES with a price target increase from $82 to $104 on Feb. 24.

Polen Emerging Markets Growth Strategy stated the following regarding NetEase, Inc. (NASDAQ:NTES) in its first quarter 2024 investor letter:

“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”