NetEase Inc.(NASDAQ: $NTES)Revenue Rises Despite Market PressureNetEase Inc. (NASDAQ: NTES) reported solid third-quarter results, posting 8.2% year-over-year revenue growth to RMB 28.4 billion ($4.0B). The company’s performance was driven primarily by its gaming division, though investor response remained muted as the stock pulled back after a strong multi-month rally.
Gaming Remains the Core Growth Engine
NetEase’s gaming revenue climbed 11.8% to RMB 23.3 billion ($3.3B), reinforcing the company’s leadership in China’s online gaming market. Long-running titles such as Fantasy Westward Journey Online continued to generate strong engagement, while new global releases like Destiny: Rising delivered impressive adoption.
The company’s strength lies in consistent updates, global game rollouts, and its ability to balance legacy franchises with innovative new titles. This pipeline helped offset slower performance in other business segments, where cloud music, education technologies, and other initiatives delivered mixed results.
However, despite gaming outperformance, the stock declined. This suggests that markets either expected stronger beats or remain skeptical about NetEase’s expansion potential outside its core gaming business. Investors appear cautious about growth diversification, monetization risks, and regulatory uncertainties in China’s digital content space.
Technical Outlook
NASDAQ:NTES recently broke out of a years-long symmetrical triangle, rallying sharply toward the $159 zone, where it formed a local high. After reaching this peak, price pulled back toward the current $133.
This retracement appears healthy within a broader uptrend. Buyers may look for continued support above the $118 demand zone, which marks the prior breakout area highlighted on the chart. If bulls defend this region, momentum could resume toward the $150–$160 target zone. A weekly close below $118, however, may trigger a deeper move toward $105. However, NetEase remains fundamentally strong and technically bullish over the long term.
Netease
NetEase: Upward Surge!NTES generated a strong upward impulse, surging nearly 15% higher, including a gap-up. This brought the stock noticeably closer to the high of the green wave , which should ideally form just below the resistance at $134.44. After this peak, we anticipate significant sell-offs down to the $53.09 support level, where the beige wave II should conclude. Since a sustainable uptrend should follow this low, we have highlighted a magenta Target Zone (coordinates: $59.67 – $27.95), which is suitable for long entries. Once the zone is completed, the price should reach levels above the resistance at $134.44 during the subordinate green wave . This mark also plays a role in our alternative scenario (probability: 38%). If the price rises above the $134.44 resistance without previously reaching the Target Zone, we will have to consider an alternative corrective wave structure, with the price currently in the green wave alt. .
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$NTES NETEASE to benefit from Chinese stimulus.NetEase, Inc. is a prominent Chinese internet technology firm established by Ding Lei in June 1997. The company offers a diverse range of online services encompassing content, community engagement, communication, and commerce. It specializes in the development and operation of online games for both PC and mobile platforms, alongside advertising, email services, and e-commerce solutions within China. As one of the largest players in the global internet and video game industry, NetEase also manages several pig farms. Additionally, it features an on-demand music streaming service. Notable video game titles from NetEase include Fantasy Westward Journey, Tianxia III, Heroes of Tang Dynasty Zero, and Ghost II. From 2008 to 2023, the company was responsible for the Chinese versions of popular Blizzard Entertainment games, including World of Warcraft, StarCraft II, and Overwatch. In August 2023, NetEase unveiled a new American studio, spearheaded by veterans from Bethesda and BioWare.
NetEase: Microsleep 😴The NetEase share price continued to rise last week. Although there was a slump of around 10% last Thursday, the share price recovered quickly. We primarily expect the magenta-colored wave (b) to continue moving upward. Ideally, we expect the high of this corrective rise to be just below the resistance at $134.44. From there, the price should then sell off significantly in order to complete the beige-colored wave II. However, our alternative scenario (33% probability) should not be ignored. It sees the price in the green wave alt.(B) on a break of the resistance at $134.44. Consequently, within this scenario, the price should continue to rise (albeit correctively) before a sharp sell-off.
NetEase Releases Third Quarter 2021 Unaudited Financial Results"As an innovation-driven content creator, we will continue to deliver thoughtful premium content and products to our users across each of our carefully cultivated disciplines," said the CEO and director of NetEase, William Ding.
Third Quarter 2021 Financial Highlights
- Net revenues were CNY 22.20 billion (USD 3.4 billion), an increase of 18.9% compared with the third quarter of 2020.
- Online game services net revenues were CNY 15.9 billion (USD 2.5 billion), an increase of 14.7% compared with the third quarter of 2020.
- Youdao net revenues were CNY 1.4 billion (USD 215.3 million), an increase of 54.8% compared with the third quarter of 2020.
- Innovative businesses and other net revenues reached CNY 4.9 billion (USD 761.1 million), an increase of 25.7% compared with the third quarter of 2020.
- Gross profit was CNY 11.8 billion (USD 1.8 billion), an increase of 19.5% compared with the third quarter of 2020.
Total operating expenses were CNY 8 billion (USD 1.2 billion), an increase of 14.5% compared with the third quarter of 2020.
- Net income attributable to the Company's shareholders was CNY 3.2 billion (USD 493.8 million). Non-GAAP net income attributable to the Company's shareholders was CNY 3.9 billion (USD 598.7 million).
Basic net income per share was USD 0.15 (USD 0.74 per ADS). Non-GAAP basic net income per share was USD 0.18 (USD 0.90 per ADS).
Third Quarter 2021 and Recent Operational Highlights
- Expanded games portfolio with new games in more diverse genres, including:
Naraka: Bladepoint, which broke the sales record of buy-to-play games by Chinese developers and led the Steam top-sellers chart, remaining in the top 5 for weeks following its global launch in August.
Harry Potter: Magic Awakened, which led China's iOS top grossing chart and top download chart following its launch in September.
- Exciting new titles in China such as Ace Racer, Infinite Lagrange and Nightmare Breaker.
Launched The Lord of the Rings: Rise to War in Europe, the Americas, Oceania and Southeast Asia.
Extended solid popularity of franchise titles including the Fantasy Westward Journey and Westward Journey Online series.
- Enriched dynamic game development pipeline with exciting advancements to upcoming games including The Showbiz: Dream Chaser, the console version of Naraka: Bladepoint, Diablo® Immortal™, as well as Ghost World Chronicle, and Harry Potter: Magic Awakened in international markets.
- Progressed Youdao's capabilities as an education technology provider, with steady advancements in STEAM courses, adult learning and smart learning hardware devices.
- Expanded NetEase Cloud Music's content ecosystem and product innovation capabilities to strengthen its highly-engaged music-enteric community, delivering a solid financial performance.
Market Set To Drop, NTES With It?Based on historical movement, the peak could occur anywhere in the larger red box. The final targets are in the green boxes. The pending bottom should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated SELL on October 22, 2021 with a closing price of 102.24.
If this instance is successful, that means the stock should decline to at least 99.35 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 6.51% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 10.27% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 16.765% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 35 trading bars after the signal. A 1% decline must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 10 trading bars; half occur within 22 trading bars, and one-quarter require at least 30 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
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Netease $NTES Cup&Handle --> $530 potential targetDear traders,
I see a cup and handle pattern on the weekly chart.
RSI, MACD, and StochRSI show some bullish momentum.
If we break the resistance at $360-$370, we might see a potential run towards $530.
Good luck!
Disclaimer:
This is not financial advice!
Do your own research!











