5 Gaming Stocks That Are Solid Bets Despite Tariffs

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1. NetEase Inc. (NASDAQ:NTES)

NetEase Inc. is a gaming company that provides a range of services including internet content services, music streaming, online games, and online intelligent learning services. It operates in games and related services, cloud music, youdao, and other segments and is the second-largest gaming company in China.

Owing to it being a Chinese company, the stock doesn’t enjoy the rich valuations that other companies do. However, on a fundamental level, the company is as strong as a gaming company can be. Its strength isn’t derived from one-off game releases but a sustained line-up of games that continue to make their mark on the industry. Its new titles as well as legacy titles continue to be popular among gamers.

NetEase is one of two Chinese companies that have built their own gaming engine, the other one being Tencent. This already puts the company on par with global gaming giants. Tariffs may slow down the company’s progress in the US but the company’s ambitious international plans are unlikely to be halted by such measures. It has already delivered two successful titles in Japan and internationally in the form of Racing Master and Naraka: Bladepoint.

Even locally, Take Eggy Party has attracted more daily active users than any other local game. Anyone who is keeping an eye on gaming stocks would like to keep NetEase on their watchlist.

NetEase Inc. is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held NTES at the end of the third quarter which was 35 in the previous quarter. While we acknowledge the potential of NTES as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NTES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

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