NetEase (NTES) Shares Soar 1.41% on Buy Signal, HSBC Outlook

NetEase (NTES) shares surged 1.41% intraday, reaching their highest level since October 2020, marking a fifth consecutive day of gains and a 6% increase over the past five days.

The strategy of purchasing NTES shares after they reached a recent high and holding for one week yielded moderate returns over the past five years. The 5-year annualized return was 7.5%, with a maximum drawdown of 26.8% during the period. This indicates the strategy effectively captured short-to-medium-term price appreciation but also came with significant volatility. It outperformed the broader market, as the S&P 500's 5-year annualized return was 6.5% during the same period.

One of the key drivers behind the recent surge in NTES stock price is the buy signal issued from a pivot bottom point on July 10, 2025. This signal led to a significant rise of 7.66% and is expected to continue until a new top pivot is reached.

Additionally, HSBC Research has projected that NetEase is likely to report robust second-quarter results, with an anticipated 28% increase in adjusted net profit. This positive outlook from a reputable financial institution has further bolstered investor confidence in the company's future performance.