Tencent Game Threat Seen Overdone in NetEase’s $8 Billion Selloff
- NetEase has dropped 10% on concern over Tencent’s ‘Dream Star’
- NetEase’s ‘Eggy Party’ has been dominant in China casual games
This article is for subscribers only.
The $8 billion wipeout in NetEase Inc.’s market value over the past three weeks on concerns of competition from a new Tencent Holdings Ltd. game ignores the company’s strong market position in China.
Bulls believe that NetEase will rebound, thanks to the massive popularity of its Eggy Party, as well as a promising pipeline of new titles. They also note that the company is a “pure play” in games, which are more recession-proof than other consumer segments where Tencent is exposed.