Here’s Why Investors May Want To Own NetEase Before August 20th

Investors may want to consider buying NetEase (NASDAQ: NTES) before their Aug. 20, 2026 pre-market Q2 earnings. With a forward P/E of 13, operating margins of 41.4%, and a return on equity of 22.1%, the stock offers a value multiple typically seen in growth companies. Its consensus price target of $161.99 is higher than its current price of $126.24, and 31 of 32 analysts rate it a Buy or Strong Buy.

NetEase pays a real dividend yield of 2.43%, while EA and TTWO pay less income, and TTWO does not pay a dividend at all. The company's balance sheet is strong, with RMB 167.5 billion in cash, and it has retired $5 billion in share buybacks. Recent successes in games like Where Winds Meet and Fantasy Westward Journey, with record concurrent users, and expanding Marvel Rivals, suggest continued franchise momentum.

The analyst who called NVIDIA in 2010 has named NetEase as one of his top 10 AI stocks, but it didn't make the cut. With a better income, cheaper valuation, and strong franchise stability, now may be a good time to buy NetEase stock before the Aug. 20 earnings release.