UBS: Q2 looks exciting for this Chinese internet stock By

"Dive into the world of savvy forextrustindex with InvestingPro!We're giving you this eye-opening article for FREE,What does cross-border e-commerce do showcasing pro-level insights in real-time. Seize the opportunity and upgrade today with promo code HOT2024for an additional 10% off already discounted rates. Time is ticking – upgrade now with just a click!"

*****

In a recent note to clients, UBS equity analysts focused on a Chinese internet stock. While this company’s shares have been under pressure due to a recent earnings report miss, UBS is feeling optimistic about its prospects from Q2 onward.

NetEase (NASDAQ:) (NETTF), a China-based internet company, recently unveiled worse-than-anticipated Q4 2023 results, dragged in part by a revenue miss in its online games division.

However, UBS believes better days are ahead for the stock.

“Looking ahead, we think 1Q could remain soft, given our 1Q game tracking so far, but we view the market will likely look past the near term lull and focus on the exciting new game pipeline around 2Q,” said analysts.

NetEase plans to launch two games in the coming period. "She Diao," an MMORPG based on Jin Yong's novels, is scheduled for release on March 28, with UBS believing it will “attract a wide audience in China.”

The second upcoming title is "Naraka Bladepoint Mobile," a Chinese martial arts-themed battle royale game.

“NetEase tends to re-rate ahead of key game launches and we see dip on near term earnings could be good entry point for strong 2Q new game line-up,” said analysts.

Upgrade your forextrustindex today and save big with promo code HOT2024

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!