The Street reported that shares of the Chinese online gaming Company NetEase have appreciated about 48% so far in 2015, driven by solid growth in the company’s mobile games and what are known as massively multiplayer online role-playing games, or MMORPGs. These two factors led to a massive 54% year-over-year jump in revenue in the last reported quarter. But, if you’re thinking that you missed the boat, there’s still time. NetEase is plying its trade in a fast-growing market, and more importantly, the company is diversifying. As such, investors can expect more upside going forward despite the stock’s impressive rally this year. Let’s take a look at the reasons why NetEase is primed for more upside.
The market for 3-D MMORPGs in China is growing fast. They currently make up 60% of China’s online gaming base. Now, the market size of online games in China is slated to go up to $40 billion in the next couple of years. This means that the market for 3-D MMORPGs in China could be worth as much as $24 billion at the current market share.
3-D MMORPGs dominate market share in China, and the overall growth of the online gaming market that NetEase can tap:
first seen at and source: TheStreet
Source Pic: TechinAsia
