NetEase Is Finally Unlocking Its Potential For A New Era

NetEase is rated as a Buy, with an estimated fair price of $141.7, 24.2% above the current price, even after discounting risks. NTES will be able to increase revenue thanks to its successful global expansion and longer-lasting live service games, while it will increase its margins from AI efficiency gains and lower distribution costs. The worries of AI being a disruptor for online games are overstated. To truly leverage AI will require vast asset and data libraries, as well as operational expertise.