What's Going On With NetEase (NTES) Stock?

Author: Henry Khederian | August 06, 2024 12:08pm

NetEase Inc (NASDAQ:NTES) shares are trading lower by 1.27% to $86.79 during Tuesday’s session and are lower by 6.6% over the trailing week. Shares of Chinese stocks are volatile in recent sessions amid global economic concerns.

NetEase is one of China’s leading internet and online game service providers. The company’s stock is heavily influenced by the overall sentiment towards Chinese tech and internet companies. The plummeting of China stocks to a six-month low signals broad negative sentiment, which can cause investors to sell off shares in major Chinese tech companies like NetEase.

NetEase also generates a significant portion of its revenue from online games and services, which are discretionary spending items. Economic uncertainty and a weakening yuan can lead to reduced consumer spending power, potentially impacting NetEase’s revenue.

A declining yuan against the dollar can affect NetEase’s profitability, especially if it has significant dollar-denominated costs or international revenue. Currency fluctuations can create uncertainty about future earnings, leading to stock volatility.

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How To Buy NTES Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in NetEase’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, NTES has a 52-week high of $118.89 and a 52-week low of $81.30.

Posted In: NTES