NetEase Inc (NTES): Today's Featured Internet Winner

NetEase ( NTES) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 0.2%. By the end of trading, NetEase rose $1.49 (2.6%) to $59.63 on average volume. Throughout the day, 639,311 shares of NetEase exchanged hands as compared to its average daily volume of 667,000 shares. The stock ranged in a price between $58.21-$59.82 after having opened the day at $58.61 as compared to the previous trading day's close of $58.14. Other companies within the Internet industry that increased today were: Ultimate Software Group ( ULTI), up 8%, VirnetX ( VHC), up 6.7%, Synacor ( SYNC), up 6%, and Zynga ( ZNGA), up 5.9%.

NetEase, Inc., an Internet technology company, engages in the development of applications, services, and other technologies for the Internet in China. NetEase has a market cap of $7.63 billion and is part of the technology sector. The company has a P/E ratio of 20, above the average internet industry P/E ratio of 14.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 29.6% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate NetEase a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates NetEase as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).
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