NTES MACD Death Cross: Bollinger Bands Narrowing on 15-Minute Chart

NTES's 15-minute chart has recently exhibited a MACD Death Cross, accompanied by narrowing Bollinger Bands as of October 16, 2025, at 12:30. This suggests that the stock price has the potential to continue declining, with diminishing magnitude of fluctuations.

As of October 16, 2025, at 12:30, NetEase Inc. (NTES) exhibited a MACD Death Cross on its 15-minute chart, accompanied by narrowing Bollinger Bands. This technical indicator suggests that the stock price may continue to decline, with diminishing fluctuations in magnitude, according to a GuruFocus report. The combination of these signals could indicate a bearish trend for the company's stock.

Despite this technical analysis, JPMorgan recently upgraded NetEase to an Overweight rating, raising the price target to $190. The upgrade is driven by expectations of strong revenue growth from upcoming game releases, particularly Ananta, scheduled to launch in the third quarter of 2026. JPMorgan forecasts that both Ananta and Sea of Remnants will boost game revenue by an annual growth rate of 12% in 2026 and 2027, the GuruFocus report adds.

Additionally, the firm suggests that NetEase may qualify for inclusion in the Hong Kong stock connect by 2026, which could enhance the stock’s attractiveness. This potential inclusion could lead to a positive re-evaluation of NetEase shares in the stock market, the report notes.

NetEase's financial health is robust, with strong revenue growth and profitability metrics. The company's revenue stood at $15.24 billion in 2024, with a 3-year growth rate of 5.8%. Operating margins of 31.4%, net margins of 31.21%, and EBITDA margins of 33.35% indicate efficient cost management and strong profitability, according to the GuruFocus report. The balance sheet is solid, with a current ratio of 3.23 and a debt-to-equity ratio of 0.08, suggesting low leverage and high liquidity. The Altman Z-Score of 9.49 further indicates strong financial stability, the report adds.

Analyst sentiment remains positive, with a recommendation score of 1.8, indicating a strong buy consensus. However, the stock's beta of 0.83 suggests lower volatility compared to the market, providing some stability for investors. Sector-specific risks include regulatory changes in China's gaming industry, which could impact future growth, the GuruFocus article also warns.

In conclusion, while NetEase faces sector-specific challenges, its strong financial health and positive market sentiment position it well for future growth. Investors should monitor upcoming game releases and potential inclusion in the Hong Kong stock connect as key catalysts. However, the recent technical indicators suggest potential downward pressure on the stock price.