NetEase.com, Inc. (ADR) (NTES)

TMFBreakerOrion (27.26) Submitted: 5/30/06 3:57 PM : Start Price: $23.37 NTES Score: 2.64

Chinese internet gaming/MMORPGs are are huge thing in China. As the country's economy continues to spin up and the wealth of its citizens grows I think we're going to see more and more of the teens to mid 30 year olds hopping online and shelling out money for a good escape from reality. Right now the race seems to be between NTES, SNDA, and NCTY (The9) and while SNDA might end up making the big comeback, for now I'm thinking NTES is the one that's got the edge. (Which is not to say that all three might not do fantastic in the long run.) The biggest risk? That the Chinese goverment will either take over to keep the profits for themselves (which doesn't seem to likely to me as they've been trying to enhance their economy not stifle it) or that the government will ban online gaming as being subversive or damaging to the people in some manner. The later seems not entirely unlikely given the "time bans" they've already imposed. Despite those imposed time limits the people just keep playing so until something changes I think this segment is going to keep growing like mad.

Report this Post Replies: 0 | Reply