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

NetEase ( NTES) pushed the Internet industry lower today making it today's featured Internet loser. The industry as a whole closed the day down 0.8%. By the end of trading, NetEase fell $1.49 (-2.5%) to $59.26 on average volume. Throughout the day, 778,639 shares of NetEase exchanged hands as compared to its average daily volume of 737,300 shares. The stock ranged in price between $59.08-$61.22 after having opened the day at $60.55 as compared to the previous trading day's close of $60.75. Other company's within the Internet industry that declined today were: MeetMe ( MEET), down 11.1%, Friendfinder Networks ( FFN), down 8.5%, Crexendo ( EXE), down 6.4%, and ModusLink Global Solutions ( MLNK), down 5.6%.

NetEase, Inc., through its subsidiaries, engages in online games, Internet portal, and wireless value-added services businesses in China. It operates an online community and offers Chinese language content and services. NetEase has a market cap of $8.09 billion and is part of the technology sector. The company has a P/E ratio of 15.8, below the average internet industry P/E ratio of 20.2 and below the S&P 500 P/E ratio of 17.7. Shares are up 32% 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 five 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, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Authentidate Holding Corporation ( ADAT), up 6.9%, Demand Media ( DMD), up 6.8%, Youku ( YOKU), up 5.9%, and Remark Media ( MARK), up 5.8%, were all gainers within the internet industry with j2 Global ( JCOM) being today's featured internet industry winner.

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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