NetEase scores a ‘Perfect 10’ from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. The average NetEase price target stands at $128, which implies upside potential of 37.4% from current levels. Wall Street’s TakeĬonsensus among analysts is a Strong Buy based on fives Buys and one Hold. However, regulatory headwinds continue to hit NetEase.Īccording to a Bloomberg report, the decision to postpone the Chinese launch of Diablo Immortal came on the heels of NetEase’s Weibo social media account being recently banned from posting because of an unspecified violation of regulatory laws. Chinese authorities have only recently resumed approval of games after a long pause amid a crackdown on technology companies.

Investors may also be concerned about NetEase potentially running into regulatory challenges that could complicate its sales recovery. It seems investors are worried that the delayed release of a major title like Diablo Immortal would hurt NetEase’s sales in its most important market. Chinese Regulatory ChallengesĬhina is NetEase’s main market. The game is expected to launch in other Asian markets such as Malaysia, Indonesia, Hong Kong, and Taiwan on July 8, according to a Bloomberg report. On June 2, Diablo Immortal made its international debut. Additionally, the team is working on optimizing the game’s performance. According to NetEase, the developer team needed to make some adjustments to support a broader range of device types. According to a CNBC report, NTES postponed the title’s release without specifying a future date. NetEase had planned to release the game in mainland China on June 23. NetEase Delays Diablo Immortal’s Launch for Improvements

Microsoft ( MSFT) agreed to acquire Activision Blizzard for $68.7 billion, explaining that the deal would also provide it with metaverse building blocks.

NetEase’s stock is dual-listed in Hong Kong and the U.S.ĭiablo Immortal is a mobile and PC game that NetEase developed in partnership with Activision Blizzard ( ATVI). NetEase ( NTES) shares fell sharply on June 20, after the Chinese videogame developer postponed the release of its highly anticipated Diablo Immortal title.

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