AI-Powered Growth in Internet Software & Services: Why Criteo and NetEase Are Strategic Buys in 2025

The global economic landscape in 2025 is marked by a delicate balance between stabilization and transformation. As trade uncertainties and inflationary pressures persist, AI-driven tech companies have emerged as critical pillars of growth. According to a report by PwC, global private AI investment surged to $252.3 billion in 2024, a 26% increase from the prior year, with generative AI accounting for over 20% of this influx. This momentum has translated into tangible economic impact: approximately half of 2025's GDP growth is attributed to AI-driven capital expenditures and innovations. For investors, this environment underscores the strategic value of companies that combine cutting-edge AI capabilities with robust global diversification strategies. Criteo and NetEase stand out as prime examples, leveraging their technological and geographic strengths to navigate macroeconomic headwinds while delivering compelling returns.

Criteo: Pioneering AI-Driven Commerce in a Fragmented Retail Ecosystem

Criteo's Q3 2025 results highlight its dominance in the AI-powered retail media space. The company reported revenue of $470 million, with gross profit rising 11% year-over-year to $256 million and Contribution ex-TAC increasing 8% to $288 million. Adjusted EBITDA surged 28% to $105 million, driven by efficient cost management and higher Contribution ex-TAC. These metrics reflect Criteo's ability to monetize its AI-driven personalization tools, which optimize real-time inventory, pricing and personalized shopping experiences for retailers.

Criteo's technological edge lies in its use of behavioral embeddings, purchase groupings, and outcome tracking to refine predictive models continuously. As stated in its blog, the company is advancing "agentic commerce," where AI assistants and agents deliver prompt-based product recommendations and full-funnel campaigns. This approach aligns with broader market trends: 65% of enterprises now regularly utilize generative AI, doubling from 33% in 2023. Criteo's recent partnerships with DoorDash, Sephora, and Migros further expand its retail network, enhancing its platform's reach.

Strategically, Criteo's decision to redomicle to Luxembourg and list on Nasdaq signals a commitment to broadening its shareholder base and accessing new capital markets. This move, combined with its subscription-based revenue model, positions the company to sustain growth even in a slowing macroeconomic environment.

NetEase: Global Gaming Expansion and AI-Enhanced Ecosystems

NetEase's 2025 performance underscores its resilience in the gaming sector and its strategic pivot toward global diversification. In Q2 2025, the company reported revenues of RMB 27.9 billion ($3.9 billion), with its gaming segment contributing RMB 22.8 billion ($3.2 billion)-a 13.7% year-over-year increase. Titles like FragPunk and MARVEL Mystic Mayhem achieved global rankings, reflecting NetEase's ability to localize and scale IP across markets. By Q3, revenues rose further to RMB 28.4 billion, with online games accounting for RMB 22.8 billion, a 13% year-over-year gain.

NetEase's AI integration is equally compelling. The company's unified AI platform enhances commerce on retailer sites and the open internet, leveraging a vast dataset to improve performance for marketers and retailers. This mirrors Criteo's focus on AI-driven commerce but is complemented by NetEase's strengths in gaming and entertainment. For instance, AI-driven innovations in Where Winds Meet and Marvel Rivals have expanded the company's international footprint, mitigating reliance on the Chinese market.

Financially, NetEase's gross profit increased 12.5% year-over-year to RMB 18.1 billion ($2.5 billion) in Q2 2025. Its ability to navigate regulatory challenges in China while scaling globally has stabilized its credit outlook and attracted investor confidence.

Global Diversification: A Hedge Against Macroeconomic Volatility

Both Criteo and NetEase exemplify how global diversification buffers against regional economic shocks. Criteo's expansion into agentic commerce and its partnerships with international retailers like Sephora reflect a strategy to capitalize on the $1.2 trillion global retail media market. Similarly, NetEase's foray into the Middle East and other emerging markets-where investments in AI and renewables are accelerating-positions it to tap into high-growth corridors. As noted in a Zacks Industry Outlook analysis, Criteo and NetEase are leveraging AI to transform their core offerings, from programmatic advertising to gaming IP. For example, Criteo's predictive bidding tools and NetEase's AI-enhanced game mechanics both address the need for hyper-personalization in a fragmented digital landscape.

Conclusion: Strategic Buys in an AI-Driven Era

In a stabilizing yet uncertain economic environment, Criteo and NetEase offer compelling value propositions. Criteo's AI-powered retail media platform and subscription-based model provide recurring revenue and scalable margins, while its redomiciling strategy enhances long-term flexibility. NetEase's gaming dominance, global IP expansion, and AI-driven commerce tools position it to capitalize on both entertainment and retail sectors.

For investors, these companies represent more than just growth-they embody the future of AI-driven innovation in internet software and services. As global AI adoption accelerates and diversification becomes a necessity, Criteo and NetEase are well-positioned to deliver outsized returns in 2025 and beyond.